Mozambican President Daniel Chapo and South African President Cyril Ramaphosa will inaugurate, on 3 December, Mozambique’s first domestic gas production plant, valued at US$1 billion (63.2 billion meticais), located in Inhassoro district, Inhambane province. According to a Lusa report citing an official source, the South African head of state’s presence follows a formal invitation from the Mozambican President.
The same source explained that the invitation to Cyril Ramaphosa is linked to the investment by Sasol, the South African energy company implementing the new domestic gas processing unit. The project will reduce imports of this product by 75%, strengthening the country’s national production capacity.
The participation of the South African President is also associated with the Integrated Processing Plant project, developed under the Production Sharing Agreement (PSA) between the Mozambican Government and Sasol. This initiative deepens energy cooperation between the two countries.
Sasol, which already exploits natural gas in Temane (Inhassoro) and Pande (Govuro), is leading the US$1 billion project aimed at expanding the production of cooking gas in Mozambique. The investment seeks to increase domestic supply and reduce external dependence.
On 4 November, the company announced the experimental loading of the first batch of liquefied petroleum gas (LPG), commonly known as domestic gas, which it described as a milestone in the commissioning process of the new unit. Sasol said the successful operation demonstrates significant technical progress ahead of the inauguration.
The Minister of Mineral Resources and Energy, Estevão Pale, highlighted in September that the new unit will reduce import dependence, increase the supply of fuels, and create new business and employment opportunities in the energy sector. He also underlined the Government’s intention to open space for the private sector, with improved regulation and oversight.
According to Government data, the PSA project foresees an annual production of 53 million megajoules of natural gas, enabling the operation of the Temane Thermal Power Plant (CTT), and the daily production of 4,000 barrels of light oil. The CTT will have the capacity to generate 450 megawatts of electricity, and the unit will be able to produce 30,000 tonnes of LPG annually.
The first stone of this unit was laid in 2022, and the start of production, initially planned for 2024, was postponed to March and later to November this year. Relations between Mozambique and South Africa, regulated by the Binational Commission since 2015, are gaining new momentum at a time when Mozambique remains South Africa’s largest trading partner, with an annual trade volume of US$2 billion (126.4 billion meticais).
Source: Lusa
