South African petrochemical company Sasol, which operates in Mozambique, in the province of Inhambane, recently revealed that in 2023 it spent 250 million dollars on the acquisition of goods and services, as part of the implementation of the PSA (Production Sharing Agreement) project, which aims to make a significant contribution to the monetisation of gas in the country.
“In terms of awarding contracts to national companies, Sasol has achieved and exceeded its local content targets in the project. By September 2023, total awards totalled 257.6 million dollars, of which 82% went to domestic companies and 18% to foreign companies,” the company said in an annual report.
According to Sasol, work on the project is at 61 per cent, with 2,600 Mozambican workers and 537 foreigners.
“The PSA includes the construction of infrastructures that will guarantee the production of two million gigajoules of natural gas per year, which should feed the Temane Thermal Power Plant (CTT), to produce 450 MW of electricity, as well as the cooking gas (LPG) plant, which will produce 30,000 tonnes per year,” explained Sasol.
According to the petrochemical company, the work to implement the PSA 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 has to do with the gas processing plant.
“The feasibility of implementing the project also includes the construction of a resettlement village, whose foundation stone was laid in August. The resettlement consists of 45 houses for families affected by the construction of pipelines that will take PSA gas from various wells to the processing plant in Temane,” he clarified.
“As well as the houses, part of the resettlement village is the upgrading of Joaquim Marra Primary School, currently operating in precarious classrooms and under trees, which will now have 12 conventional classrooms, an administration block, toilets, two sports fields, a water supply system and eight teachers’ houses,” he concluded.