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Sasol JV Gas Pipeline Expansion Boosts Mozambique Power Unit to More than 400 Megawatts

A new expansion will increase the capacity of a natural gas pipeline that runs from Mozambique to South Africa

Released Monday, March 09, 2015

Sasol JV Gas Pipeline Expansion Boosts Mozambique Power Unit to More than 400 Megawatts

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--A newly completed expansion will increase the annual capacity of the main natural gas pipeline from Mozambique to Sasol's (NYSE:SSL) (Johannesburg) Secunda facility in South Africa by 10.5% to 188 megajoules (MJ). The 128-kilometer Loop Line 1 was laid parallel to the existing 865-kilometer pipeline, which runs from the recently expanded Temane central processing facility in Mozambique to Secunda.

Sasol is a partner in a 175-megawatt (MW), gas-fired power plant in the town of Ressano Garcia. The additional gas will allow for the generation of more than 400 MW at the hub. The Republic of Mozambique Pipeline Investments Company (Rompco) (Maputo) said the project was a milestone in the local monetization of the country's gas resources.

Rompco said the $200 million pipeline project involved 2 million work hours, had not experienced any significant safety incident, and employed more than 840 local Mozambicans. The project was set up in 2004 as a joint venture (JV) by Sasol and the governments of Mozambique and South Africa.

Sasol also initiated a pre-feasibility study on a gas-to-liquids project with Eni SpA (NYSE:E) (Rome, Italy) and Empresa Nacional de Hidrocarbonetos (ENH) (Maputo). Eni operates a block, "Area 4," in the deep waters of the Rovuma Basin, which was estimated to hold up to 85 trillion cubic feet of gas.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
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