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Mozambique

Mozambique’s National Development Strategy envisages using the country’s resources to improve living conditions for the population through structural transformation of the economy, as well as expansion and diversification of the productive base. Our development plans in Mozambique are aligned with this vision and seek to entrench the country’s position as the heartland of our oil and gas strategy in Southern Africa.

In August 2014, we inaugurated Central Termica de Ressano Garcia (CTRG), a 175 MW capacity gas to power plant at Ressano Garcia, on the border between South Africa and Mozambique. CTRG is a partnership with between Electricidade de Mocambique (EDM) (51%) the state-owned electricity utility and Sasol (49%).

The first permanent large scale gas to power plant in the country, CTRG operates on gas from the CPF, which became available following the 2012 expansion from 120 million gigajoules per annum (MGJ/a) to 183 MGJ/a. Power generated by CTRG is being used in-country to meet 23% of the country’s current electricity demand, which is estimated to be growing at 14% annually.

The priorities set out in Mozambique’s Gas Master Plan – LNG, power generation, fertiliser, GTL, and methanol – all intersect with Sasol’s integrated value proposition and proven expertise and offer significant opportunities.

Our FDP for the PSA licence (discussed on page 7 of this brochure) incorporates a range of options aligned with the Plan and also involves the expansion of the CPF to process additional gas, condensate and light oil. It may include the facility to produce liquefied petroleum gas (LPG), which would substitute much of the 15 000 to 20 000 tonnes/annum that is currently imported at significant cost to Mozambique.

Given our experience in gas monetisation in the country, we believe Sasol has a key role to play in opening up monetisation avenues, not just in the Mozambique basin, but also in terms of the Rovuma basin gas in Northern Mozambique. The Rovuma discoveries are large enough to support gas monetisation options in addition to LNG. Accordingly, a joint pre-feasibility study for a large-scale GTL plant, which will be based on gas from the Rovuma Basin, is underway. The study, which is being conducted in conjunction with Mozambique’s national oil company, Empresa Nacional de Hidrocarbonetos (ENH) and Italian multinational, Eni S.p.A. (Eni), will assess the viability and benefits of such a plant in the region.

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