Mozambique: Sasol increases natural gas production in Pande and Temane

16 April 2009

Maputo, Mozambique, 16 Apr – The South African petrochemical company Sasol is to increase its production of natural gas at Pande and Temane in Inhambane province, after discovering new reserves in the area, according to Maputo’s Noticias newspaper.

Further work in these two blocks will mean output increases from 120 million to 183 million gigajoules a year, said the newspaper, adding that the Mozambican government had already approved a proposal for this.

The newspaper also said it had obtained information that the extra 63 million gigajoules to be produced would be divided into 27 gigajoules for a new power station to be built in Mozambique, with a capacity for generating 700 megawatts of electricity, another 27 gigajoules would be exported to South Africa and the remaining nine would go to various projects in Mozambique.

The sale of this gas will be governed by a sale agreement to be drawn up between the partners of the Sasol Petroleum Temane (SPT) consortium, oil and gas company Companhia Moçambicana de Hidrocarbonetos (CMH) and the International Finance Corporation (IFC), part of the World Bank, and the respective buyers.

Noticias also reported a considerable increase in the demand for natural gas in Mozambique and South Africa, which is borne out by the interest of various investors in getting involved in new natural gas projects. (macauhub)