Sasol, EDM Inaugurate New Gas-to-Power Plant in Mozambique

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Aug 28, 2014, 08:01 ET

RESSANO GARCIA, Mozambique, August 28, 2014 /PRNewswire/ --

Earlier today, the President of the Republic of Mozambique, Armando Guebuza, and the Mozambican Minister of Energy, Salvador Namburete, joined the chairman of the Mozambican state power utility, Electridade de Mozambique (EDM), Augusto Fernando de Sousa and the President and CEO of Sasol, David Constable, at the inauguration of Central Térmica de Ressano Garcia (CTRG).

The CTRG power plant, which is a partnership between EDM (51%) and Sasol (49%), represents Mozambique's first permanent large-scale gas-to-power facility in Ressano Garcia, which is on the border between Mozambique and South Africa.

Natural gas will be supplied to the new power plant from the Sasol-operated central processing facility (CPF) in Temane in the Inhambane province. Together with its partners, Sasol has expended approximately US$3 billion in capital investments, which include the development and expansion of the CPF and natural gas fields in Southern Mozambique, the construction of a cross-border pipeline, and the completion of the CTRG gas-to-power project.

The 175MW gas-fired power plant will supply electricity to more than two million Mozambicans - this equates to 23% of the country's current demand. The Mozambican economy is one of the fastest growing on the African continent, and is seeing electricity demand increasing by approximately 14% annually.

The opening of the CTRG power facility comes as Sasol celebrates its 10^th anniversary of developing the Temane and Pande stranded gas fields in Mozambique, through strong in-country partnerships and its technical expertise. The company's investments over the past decade have contributed to the creation of a favourable investment climate for Mozambique, while establishing an exploration and natural gas production sector in the region. These investments also serve to support economic growth and development in both Mozambique and South Africa.

Sasol President and CEO, David Constable said, "By working together with our Mozambican and South African partners, we are well-placed to unlock the ultimate potential of Mozambique's hydrocarbon resources in an integrated and sustainable manner, which will benefit not only the country but the broader region."

EDM Chairman Augusto Fernando de Sousa commented, "Despite Mozambique's extensive hydrocarbon resources, EDM is currently experiencing an electricity deficit which necessitates importing power. CTRG will help enhance the country's energy self-sufficiency and will also help to diversify our energy base."

The gas-fired power plant is expected to reach beneficial operation in October this year.

About Sasol:

Committed to excellence in all we do, Sasol is an international integrated energy and chemical company that leverages the talent and expertise of our more than 33 000 people working in 37 countries. We develop and commercialise technologies, and build and operate world-scale facilities to produce a range of product streams, including liquid fuels, high-value chemicals and low-carbon electricity.

While remaining committed to our home-base of South Africa, Sasol is expanding internationally based on a unique value proposition.

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SOURCE Sasol Limited