SASOL has obtained approval from the Mozambique Council of Ministers for its field development plan (FDP) that will involve the development of further hydrocarbon resources to support growth in southern Africa.

The first phase of the production sharing agreement (PSA) licence area development proposes an integrated oil, liquid petroleum gas (LPG) and gas project adjacent to Sasol’s existing petroleum production agreement (PPA) area.

The PPA area is where natural gas from the Pande and Temane fields is currently produced and processed in a central processing facility before being transported via an 865km pipeline to gas markets in Mozambique and SA.

"The Mozambican gas industry is playing an increasingly important role in the regional energy landscape and this project represents a major milestone in further developing natural resources, which will significantly benefit southern Africa," Sasol president and CEO David Constable said.

"The PSA development is aligned with our commitment to both Mozambique and SA, and will enable us to drive our broader 2050 strategy, which reaffirms Sasol’s longer-term role in southern Africa."