Mozambqiue: Sasol optimistic about political dialogue – AIM | Watch

Login

Register

http://www.clubofmozambique.com/

Mozambqiue: Sasol optimistic about political dialogue – AIM | Watch

9:55 CAT | 04 Apr 2025

Screen grab: Txopela

Simon Baloy, the executive director of the South African petrochemical giant Sasol, believes that the “Political Commitment for an Inclusive National Dialogue”, a document signed on 5 March by Mozambican President Daniel Chapo and nine political parties, will bring the environment required for the implementation of Sasol’s projects in the country.

The document on Wednesday was turned into law by the Mozambican parliament, the Assembly of the Republic.

Speaking to reporters on Wednesday, in Maputo, after an audience granted to him by President Daniel Chapo, Baloy said that Sasol’s partners have noted the progress in political stability and conveyed their confidence in “continuing to contribute to the country’s development.”

“Although we have seen that there have been some challenges, we are encouraged by the stability that the President is bringing to the country, together with all the partners, to create a favorable place for business”, he said.

As a result of the improved political and social stability, he said, Sasol hopes to soon start transforming gas extracted in the district of Inhassoro, in the southern province of Inhambane, at the Temane Thermal Power Plant (CTT).

READ: Mozambique: Sasol expects $1B gas, electricity project up, running in September

The project is 85 percent owned by Mozambique Power Invest (MPI) and 15 percent by Sasol-Africa. MPI is owned by Globeleq (76 percent) and by the publicly-owned electricity company, EDM, with 24 percent.

“We’re here in Mozambique to discuss with the President the progress of our project, the PSA Production Sharing Agreement. It’s about a billion dollar project, which is now coming to an end, I think next September. This was a marvelous project that we did with the Mozambican entities”, he said.

Baloy added that the PSA will not only allow gas for power production, but will also send the gas to CTT, the second largest power plant in Mozambique, which is also nearing completion.

“At CTT, we will also produce LPG, which will be used and will reduce the amount of gas imported into Mozambique. So Sasol is very excited about continuing this long-standing relationship with Mozambique”, he said.

Sasol has been operating in Mozambique since 2004 and operates the Pande and Temane onshore gas fields in Inhambane. It has a gas processing plant at Temane from which gas is transported by pipeline to South Africa. Some of the gas is taken from the pipeline for industrial use in southern Mozambique, including the generation of electricity.