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Sasol Ltd Board approves the Final Investment Decision (FID) for the PSA

Date: 
22 February 2021

Maputo, Mozambique – Sasol has approved the final investment decision (FID) on the Production Sharing Agreement (PSA). 

This project will entail Mozambique incountry monetisation of gas through a 450-megawatt gas-fired power plant Central Térmica de Temane (CTT) and a liquefied petroleum gas (LPG) facility in the same time frame. The balance of the gas produced will be exported to South Africa to sustain Sasol’s operations. 

The total estimated project cost is US$760 million and is within the scope of the PSA Plan of Development (PoD) which was approved by the Council of Ministers’ Resolution Nr 3/2020, of 29 September. 

Speaking to the press this morning, Sasol’s President and CEO, Fleetwood Grobler, said: “The PSA development underpins Sasol's gas transformation strategy by securing additional gas supply from southern Mozambique into Sasol's gas value chain starting 2024 and serves as a cornerstone in addressing Sasol's sustainability agenda”.

The PSA Development project is scheduled to kick-off in July 2021, subject to CTT financial close, and will employ over 3 000 Mozambicans until 2024. 

Sasol remains committed to the development of the country and we believe that with PSA entering into development and production phase, we will be able to bring additional value to what we have already been doing through the Petroleum Production Agreement (PPA) license which is contributing to the economy since 2004.

 

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