Mozambique Oil & Gas: Sasol mulls gas exports by sea

Sasol facilities

Sasol facilities

An environmental impact study is being conducted into a Sasol proposal to link up its onshore liquid natural gas processing centre to a floating storage and export unit in the sea off the coast of Mozambique’s southern Inhambane province.

A Sasol source quoted on Tuesday by Notícias announced that the company had appointed the Environmental Resources Management and Impacto companies to conduct the environmental impact evaluation process on its behalf, including the public participation component.

A preliminary report on environmental feasibility study and definition of the scope and terms of reference is to be presented for public scrutiny this month in Inhambane’s Inhassoro district and in Maputo.

The South African petrochemical company intends the investment to diversify production alternatives in the Pande and Temane fields in Inhambane. So far, Sasol has exported gas using a 900-kilometres pipeline between the production area and South Africa.

Sasol is involved in other hydrocarbon prospecting activities in Inhambane, having recently started a drilling program under a production-sharing contract signed with the Mozambican authorities in January.

The facilities for oil and liquefied petroleum gas production will be located near the existing gas processing plant at Temane, where a fifth unit will be installed.

“The first well sunk in the production-sharing license area reaffirms Mozambique as the central point of Sasol sub-Saharan oil and gas strategy and provides a platform from which socio-economic growth will be driven,” senior vice president of Sasol Exploration and Production International Joao Sichinga said at the time.

The Mozambique Council of Ministers approved the Development Plan of the Production Sharing Agreement in January, and shortly afterwards Sasol ordered equipment from French drilling concern Société de Maintenance Pétrolière which arrived at the port of Maputo in March. Thirteen producing wells are penciled in for the first stage.

It is anticipated that the first production sharing development phase contract will cost about US$1.4 billion.(Source: AIM))

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