This Monday, 31 May 2021 in Maputo, witnessed by the President of the Republic of Mozambique, Filipe Nyusi, Sasol signed the Gas Supply Agreement with ENH and EDM and the LPG Sales Agreement with ENH.

The Gas Supply Agreement is a component of the Production Sharing Agreement (PSA) and the formal link between Sasol and ENH (co-sellers) with EDM for the gas supply that will enable the generation of 450MW of electricity at the Temane Thermal Power Station (CTT).

Through LPG Sales Agreement Sasol will supply 30,000 tonnes per year of LPG (cooking gas) to ENH, which will cover 75% of current market demand.

Sasol President and CEO, Fleetwood Grobler, said that this Agreement will accelerate and help boost the economy of Mozambique, and assured that “the first date for the production of gas is aligned with the date for the commissioning of the CTT in 2023, and production of LPG and light oil in 2024” .

During event, President Filipe Nyusi expressed his appreciation to Sasol, which, as a concessionaire of the gas fields and at the same time partner of EDM in the power generation project, “was crucial in finding a solution that would make the project viable”. He also said that Temane's Gas and Power Projects should prioritize Mozambicans by reducing the import and deficit of cooking gas and electricity.

Apart from the 23 PJ/a of natural gas which will be in-country monetised by enabling the CTT project and the 30,000 tonnes per year of LPG, the PSA project will also produce 4,000 barrels (pick) per day of light oil for export.

"The signing of the Gas Supply Agreement and the LPG Sales Agreement, therefore, underpins Sasol's gas transformation strategy and also serves as ratification to extend our plateau production from the existing license, in turn helping to boost the Mozambican economy", said Fleetwood.

KeyFacts Energy: Sasol Mozambique country profile