Sasol plans to construct a 140MW natural gas-fired power plant in Sasolburg, South Africa.
The plant is being constructed to meet Sasol's own energy needs and reduce its dependence on utility company Eskom.
Construction of the ZAR1.8bn ($261.9m) plant comes in line with Sasol's aim to augment the energy efficiency of South African utilities by 15% per unit of production by 2015 compared to 2000.
The company is expected to commence construction at the plant this month, while commercial operations are scheduled to begin in 2012.
Sasol’s energy unit managing director Henri Loubser said the power generated from the project will increase the electricity supply in UK, which otherwise has to be imported from the national grid.