|Approval Date||22 Oct 2003|
|Signature Date||19 May 2004|
|Sovereign / Non-Sovereign||Non Sovereign|
|Sector||Industry, Minning & Quarrying|
|DAC Sector Code||32210|
The Sasol Natural Gas Project is a 550 million rand (about 79 million US dollars) public-private operation between South Africa and Mozambique contributes to fostering regional cooperation and integration and to identifying operational challenges that are specific for multinational operations. The project is in line with the ADB's objective to promote private sector development in Mozambique, particularly in the vast and untapped gas resources of the country. It is also in line with its private sector operational strategy, which focuses on co-financing operations with South African Development Finance Institutions in national and cross-border investments. The project is being undertaken by SASOL, a global leader in the commercial production of liquid fuels and chemicals from coal and crude oil. It involves the upstream development of the gas fields of Temane and Pande in the northeastern region of Mozambique, construction of a central processing facility and an 860-km gas pipeline from Mozambique to South Africa. The project will have significant socio-economic impact for both countries and will foster economic cooperation and integration in the region.
The core objective of the project is to develop the previously untapped natural gas resources available in Mozambique in order to supply and convert Sasol’s coal-burning petrochemical plants to natural gas. This objective fits both governments’ goals to develop gas market for Mozambican and to diversify the energy supply mix for South African market. Also, the project serves broader development objectives of strengthening the bilateral economic ties between Mozambique and South Africa; thus, contributing to regional cooperation and integration.
The project have significant economic benefits for Mozambique and South Africa Republics in the form of increased revenues, development and diversification of its energy network, opportunities for black empowerment and the strategic diversification of energy source through the use of gas as a substitute to coal.
African Development Bank
|Last Update||20 Jun 2021|