30-05-2012

Sasol inaugurates expanded natural gas central processing facility in Mozambique

Sasol Petroleum International, the upstream subsidiary of Sasol Limited, today inaugurated its expanded central processing facility (CPF) in Temane, Mozambique. The capacity of the CPF was increased to 183 MGJ/a of natural gas, from its initial design capacity of 120 MGJ/a, in order to meet increased market demand in Mozambique and South Africa.

Sasol’s partners in the CPF are Companhia Moçambicana de Hidrocarbonetos S.A. (CMH), representing the Mozambican government, and the International Finance Corporation (IFC).

The CPF began full scale production of 120 MGJ/a in 2004 and is connected to the South African market via a 865 kilometre cross-border pipeline. From the additional 63 MGJ/a resulting from the expansion, the Mozambican market was allocated 27 MGJ/a to meet their increased local demand, while 27 MGJ/a was allocated to the South African market. The remaining 9 MGJ/a represents the royalty gas allocated to the Mozambican government.

In Africa, we have both unique challenges as well as great possibilities. Overcoming these challenges requires a collective effort. In Southern Africa, in particular, it is important that we continue to work in partnership to find workable and sustainable solutions. These solutions are not only to address the region’s developmental goals but also to achieve the continent’s longer term growth aspirations.

The significant discoveries of natural gas in the northern part of Mozambique, in addition to its substantial coal reserves, will not only change the future course of development for the country, but I am sure that these developments will also serve to benefit the entire region, said Sasol’s chief executive officer, David Constable, at the inauguration of the CPF expansion in Temane.

The expansion project, at an investment cost of US$220 million US dollars, came in under budget while achieving excellent safety statistics. The project employed over 600 Mozambicans and was an important source of job creation in the area. Furthermore, and of significant value to the Mozambican economy, US$64 million in goods and materials were procured from Mozambican suppliers.

Such a complex cross-border project with multiple stakeholders would not have been possible without the strong partnership and the healthy spirit of cooperation that exists between the Mozambican and South African governments, coupled with the favourable investment conditions in Mozambique, added Constable.