Sasol, the South African petrochemical company operating in Mozambique’s Inhambane province, recently announced that it had spent 250 million dollars on the acquisition of goods and services in 2023, as part of the implementation of the PSA (Production Sharing Agreement) project. This project aims to make a significant contribution to the monetization of natural gas in the country.
According to the company, in terms of awarding contracts to national companies, Sasol has achieved and exceeded its local content targets in the project. By September 2023, the total number of contracts awarded amounted to 257.6 million dollars, of which 82% went to domestic companies and 18% to foreign companies.
Work on the project is currently 61% complete and involves 2,600 Mozambican workers and 537 foreigners.
The PSA includes the construction of infrastructure for the production of two million gigajoules of natural gas per year, to feed the Temane Thermal Power Plant (CTT), which will produce 450 MW of electricity, and the cooking gas (LPG) plant, with capacity to produce 30,000 tons per year.
The project is technically subdivided into two parts: the Outside Battery Limits (OBL), corresponding to the pipe network that connects the network of gas extraction boreholes, and the Inside Battery (IBL), which relates to the gas processing plant.
There are also plans to build a resettlement village, the foundation stone of which was laid in August. This village will include 45 houses for families affected by the construction of gas pipelines, which will take PSA’s gas from various wells to the processing plant in Temane.
The village also includes the refurbishment of the Joaquim Marra Primary School, which is currently operating in precarious conditions. After the refurbishment, the school will have 12 conventional classrooms, an administration block, toilets, two sports fields, a water supply system and eight teachers’ houses.
