SPRING LIGHTS GAS

GAS, THE FUTURE OF SUSTAINABLE BUSINESS
Spring Lights Gas (Pty) Ltd (SLG) started trading in piped gas in KwaZulu-Natal on 1st July 2002, and has become one of the most successful B-BBEE ventures in the energy sector. The inception of SLG was developed froma long-standing partnership between CEPR (A Broad-Based Black Economic Empowerment enterprise) and Sasol Gas Holdings (Pty) Ltd (A wholly owned subsidiary of Sasol Ltd).

Pipeline gas is a growing source of energy, particularly in commerce and industry. The energy source is convenient, reliably supplied and environment-friendly. Gas is primarily used as an energy source in industrial processes in the metals, chemicals, food and commercial, ceramic and non-metals, and manufacturing sectors. In addition, it is ideally suited to a wide range of applications such as heat treatment, forging, melting and casting, paint drying, galvanizing, baking and steam generation.

SLG already holds among its customers some of the most prominent industrial giants in the province, including Toyota, winning a Supplier Achievement Award 2008, Mondi, Sapref and Engen, which are based in the greater Durban areas of Mobeni, Merebank, Clairwood, Prospecton and Umbogintwini. All have benefited from on-tap, clean burning and uninterrupted energy supply provided by pipeline gas. In addition the product is cost effective and offers superior value for money, and is backed by SLG's superior service.

SLG's vision includes providing 20% of the end-user energy demands in KwaZulu-Natal within the next five years as well as becoming "industry first choice energy partner".

Capital expenditure has been set aside; in order for SLG to partner with activist industrialists to develop pipelines in and around industrial zones in KwaZulu-Natal. The development will probably double the market for SLG within the next three to four years at which point SLG will introduce another tranche that will increase that gain further.

'CLEAN' ENERGY
SLG has achieved recognition as a provider of 'clean' energy in areas beleaguered by public outcry over air pollution. Piped natural gas holds numerous advantages to the customers, which include efficient combustion as well as savings in maintenance costs. Motsamai Koapeng, CEO of SLG, says that the environmental benefits of gas also extend to communities, especially in the reduction of airborne pollution and other harmful emissions. By connecting to a gas pipeline has many advantages, by not storing coal and all the associated risks such as fire and groundwater contamination are removed. Not only does SLG contribute to a safer environment by reducing risk, but greenhouse gases are reduced and there are cost savings to be made too. Added to these benefits there is a question of efficiency and another potential can be found in the sale of carbon credits.

INSTALLATION AND MAINTENANCE
The gas pipelines are constructed according to stringent safety standards as prescribed by the ASME B3.8 code (American Society of Mechanical Engineers).The pipelines are buried at least one meter underground. In densely populated areas the pipes are at least two meters deep. All the pipeline routes are identified by route markers. There is a SCADA system employed to monitor line pressures, flows and temperatures 24-hours a day, 365 days a year. The pipeline system undergoes routine leak surveys and gas mains, service lines, valves, meters and regulators are continuously inspected.

Monthly helicopter and ground patrols are conducted to check for erosion, stability and third-party activity near the pipelines. An ongoing vegetation management program along the pipeline route is operated to ensure visibility of pipeline markers.

In addition, periodic internal pipeline inspections are conducted, using highly sophisticated electronic pigging equipment. Mock emergency response plans are practiced to test emergency procedure as well as Provincial Emergency Preparedness. Public and land owner awareness information is provided. With all these procedures in place the pipelines can be maintained and interruption in supply avoided.

ADDITIONAL SERVICES
SLG proudly offers a range of additional services at no cost to its customers as it seeks to position the company as "your future in clean energy". These services include free safety training, safety assessments, energy management and optimization and are conducted by technical consultants. Customers' technical and safety needs can be assessed and should they fall outside of the scope of SLG, they will be referred to reputable industry experts in the relevant field.

SOCIAL RESPONSIBILITY
SLG is one of South Africa's most successful empowered energy companies and strives to be a prominent corporate citizen in South Africa. The company believes that CSI projects should complement responsible business practices and impact on communities. For this reason the CSI policy and strategy is underpinned by SLG's "Standards of Corporate Conduct" and specifically its "Business Values " being People First (Safety, Diversity, Dignity and Respect for all, Team Focus, Community and Environmental Partnering and BBBEE ) ; Customer Championing, Integrity, Agility, Growing Shareholder Value, Learning. SLG has adopted three overarching themes, which are Sustainable Development; Empowerment and Civic Life for CSI, which goes beyond its obligations to contribute to the economic, social and environmental sustainability of the communities in which the company operates.

CSI Projects are supported on a three year basis, but each submission is based on its merits. SLG has supported many various beneficiaries, which have included Merebank Residents Association, TREE, Girls and Boys Town, 1000 Hills Community Helpers, the Hillcrest HIV Trust Centre; the KwaZulu Blind Society, Rally to Read, I-Care a programme for street children and various others. This belief is integrated into SLG's business activities and is reflected in the company's corporate strategy and performance objectives.