In Mozambique, we remain committed to the growth of our business and significantly contributing to the country’s development, as we have consistently done over the past 20 years,” said Muriel Dube, president of the South African oil company Sasol, during the inauguration of the new Integrated Processing Plant (IPP) in Inhambane, southern Mozambique.
The plant, officially opened by the Presidents of Mozambique, Daniel Chapo, and South Africa, Cyril Ramaphosa, stems from the Production Sharing Agreement (PSA) between Mozambique and the oil company, representing an investment of one billion dollars (866 million euros).
As a testament to Sasol’s commitment to Mozambique, Dube highlighted the company’s recognition as one of the “top” three contributors by the Mozambican tax authorities over the last 5 years.
“In addition, over the past two decades, we have invested more than four billion dollars [3.4 billion euros] in the country and are proud of the positive impact created through our operations, social investments, and skill development programs,” she stated.
The construction of the PSA project is, according to the official, another “milestone” in the partnership with Mozambique, as during the construction of the plant, whose first stone was laid in 2022, several thousand jobs were created, mostly for people from northern Inhambane.
“Our social investment program continues to make a significant difference locally, provincially, and nationally,” she said, explaining that in the 37 communities around the new venture, in the districts of Inhassoro and Govuro, about 20 million dollars (17 million euros) have been invested under the local development agreement since 2020, and an additional 35 million dollars (29.9 million euros) in other social investment projects.
“In May, we strengthened the commitment by supporting the second local development agreement. The next phase doubles our investment (…) to 43 million dollars [36.8 million euros] and expands the coverage to 70 communities around Govuro, Inhassoro, and in the district of Vilankulo, from June 2025 to June 2030, reinforcing our dedication to sustainable development in the region,” she said.
Dube also noted that during the construction of the new plant, Sasol invested “significantly” in the technical training of Mozambican professionals, “from plant operators and maintenance technicians to young engineers at the beginning of their careers,” stressing that this is “essential for the country’s ability to expand its oil and gas operations, but also for Mozambique to benefit from its own natural resources and human talents.”
On the occasion, Estevão Pale, Minister of Mineral Resources and Energy, said that the construction of the integrated hydrocarbon processing unit, particularly for the production of cooking gas, took place in a “particularly demanding” context, highlighting, among other factors, the international energy price volatility, growing energy security demands, increased LPG demand, and logistical challenges in the post-pandemic period.
The PSA project envisions the production of 53 million megajoules of natural gas per year, which will realize the implementation of the Temane Thermal Power Plant (CTT), and the production of four thousand barrels of light oil per day, according to data from the Mozambican government. The CTT will have the capacity to produce 450 megawatts of electricity, and the processing unit will have a capacity of 30,000 tons of Liquefied Petroleum Gas (LPG) annually.
