First natural gas from Mozambique arrives in Secunda

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23 February 2004

Sasol chief executive, Pieter Cox, today announced the arrival of the first natural gas along the 865km cross border pipeline from the Temane gas fields in Mozambique to Sasol's synfuels plant at Secunda, near Johannesburg in South Africa. He also said that Sasol was determined to establish new BEE involvement in future pipeline gas distribution and marketing interests, similar to the venture struck with BEE partners in Kwazulu-Natal in 2002.

Filling of the pipeline with natural gas started at the Central Processing Facility (CPF) at Temane on Thursday, 18 February and first gas arrived at Secunda on Saturday, 21 February.

?I am delighted with the success of the project so far and in achieving this significant milestone. This world-scale US$ 1,2 billion venture between Sasol and the governments of Mozambique and South Africa will unlock significant socioeconomic and environmental benefits for both countries. It also brings us in line with international energy trends and will yield environmental benefits because natural gas is a clean-burning, cost-effective fuel,? Cox said.

Minister Castigo Langa, Minister of Mineral resources and Energy of Mozambique, said: ?The export of the first processed gas from Mozambique to South Africa represents a milestone in the history of the two countries. We are pleased to experience this important event which signals a significant economic and technological achievement for Mozambique.

South Africa's Minister of Minerals and Energy, Ms. Phumzile Mlambo-Ngcuka, said: ?The South African Government welcomes the timeous consummation of this world class project that will benefit both Mozambique and South Africa. This represents the culmination of the Government/Sasol Agreement that was signed during September 2001, and once the current capacity of the pipeline is full, it will boost South Africa's primary energy supply of natural gas from the current 1,5% to approximately 4,3%, in fulfilment of the Government's policy of diversifying energy supply.?

The natural gas project consists of the Pande and Temane gas field development and a central processing facility in Mozambique, a pipeline of 865 kilometres to Secunda in Mpumalanga, the conversion of Sasol's current gas pipeline network, the supply of natural gas to industries and the conversion of Sasol Infrachem in Sasolburg to natural gas as feedstock, in place of coal. Natural gas will also be used as a supplementary feedstock for the Sasol Synfuels plant in Secunda.

The conversion of customers' facilities in the Pretoria, Johannesburg and Vaal Triangle (PWV) region will start at the end of March 2004 and the Sasol facility at Sasolburg will be ready to receive natural gas at the end of May 2004.

The project is expected to deliver 120 million GJ per annum by 2008 compared to the projected 85 million GJ per annum in 2004/2005.


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