The inaugural shipment of cooking gas marks a significant step in the monetization of natural gas domestically, which will add value to the national market, stated Ovídio Rodolfo, Sasol’s General Director in Mozambique, in a company statement.
The gas will be processed at the new Integrated Processing Factory, part of the Production Sharing Agreement project located in Inhassoro district, Inhambane province, aimed at supplying the domestic market.
“This achievement is a historic milestone that highlights Sasol’s role as a pioneering operator in Mozambique’s oil and gas industry, reinforcing its contribution to the country’s development,” the oil company commented.
This successful loading operation of the first batch of LPG is a significant milestone in the commissioning process of the new infrastructure, with preparations for its official inauguration being well advanced, the company explained.
The South African oil company Sasol’s one billion dollar (866 million euros) project is directed towards the production of cooking gas in Mozambique, complementing existing gas production in Temane (Inhassoro) and Pande (Govuro), in Inhambane.
Mozambique anticipates the inauguration of this domestic gas processing and production unit, the country’s first, in Inhassoro district, Inhambane province, later this month.
“This unit will enable integrated production of natural gas, LPG, commonly known as cooking gas, and light oil, expanding national refining capacity,” said Estevão Pale, Minister of Mineral Resources and Energy, in September.
The new unit will allow the country to reduce dependence on imports of this product, increase fuel availability in the domestic market, and generate new business and employment opportunities in the energy sector, according to the Government.
The minister signaled the Government’s intention to open opportunities for private sector participation in this and other fuel and electricity projects, while ensuring improved regulation and oversight by the state.
The project’s foundation stone was laid on March 27, 2022.
“It has been a wonderful project,” stated Simon Baloy, Sasol’s President and CEO, in May.
“This project will enable the gas to enter energy production, and we will supply the gas to Mozambique’s second-largest power station, CTT [Central Térmica de Temane], which is also nearing completion and will also produce LPG [cooking gas cylinders] to be used and reduce the amount of gas imported by Mozambique,” added Baloy.
According to Mozambican Government data, the PSA project envisages the production of 53 million megajoules of natural gas per year, which will facilitate the implementation of the Central Térmica de Temane and the production of four thousand barrels of light oil daily.
The CTT will have the capacity to produce 450 megawatts of electricity, and the processing unit will have an annual capacity of 30,000 tons of LPG.
The Mozambican Government, which had previously estimated the start of production at this unit in March, projects a 70% reduction in domestic gas imports with the commencement of operations at the Inhassoro unit.
