Temane/Pande natural gas project, Mozambique

20th January 2012 By: Lisete Bigala

Name and Location
Temane/Pande natural gas project, Mozambique.

Project Description
The project is aimed at developing a significant gas resource that was stranded for over 30 years, since discovery in the 1960s, and involves the extraction of natural gas from the Temane and Pande gasfields and the transportation of the gas through a pipeline to Sasol’s facilities in Secunda, in South Africa.

The gas is further distributed to Sasol’s second site, in the Free State, and to other end-users in South Africa.

The project consists of five distinct but integrated and mutually dependent components, namely:
• The development and production of gasfields in Mozambique (upstream).
• The construction of a central processing facility (CPF) at Temane (processing).
• The construction of an 865 km gas pipeline from the gasfields to South Africa (pipeline).
• The conversion of Sasol’s existing petrochemicals plants in Sasolburg from coal to gas feedstock and supplementing the coal feedstock with gas at Sasol’s larger facility in Secunda (manufacturing).
• The setting up of a gas distribution network (downstream).

Value
$2.1-billion.

Duration
Natural gas production started at the CPF at Temane in 2004.
Gas production is expected to be lifted by 50% to 183-million gigajoules by 2016.

Client
A public–private partnership between the government of Mozambique, the government of South Africa and Sasol.

In the upstream project, Sasol has a 70% share and is the operator. Empresa Nacional de Hidrocarbonetas (ENH) and the International Finance Corporation have a 5% share in both fields.

In the pipeline project, Sasol gas has a 50% share, while the government of South Africa and Companhia Moçambicana de Gasoduto each hold 25%.

Key Contracts and Suppliers
Petrofac (engineering, procurement and construction, or EPC).

Latest Developments
Petrofac has been awarded the EPC contract – under the contract Petrofac will carry out EPC works and commissioning assistance for pigging facilities on the Pande trunk line between the Pande reservoir and the CPF at Temane.

Further, Sasol opened the expanded Pande/Temane processing plant in November 2011 and is confident of lifting gas production by 50% to 183-million gigajoules by 2016, from 120-million gigajoules currently.

On Budget and on Time?
Yes.

Contact Details for Project Information
Petrofac head of communications Hazel Meldrum, email communications@petrofac.com or corporate communications manager Claire Baxter communications@petrofac.com.
Sasol media communications, Nothemba Noruwana, cell +27 82 3290 186 or email nothemba.noruwana@sasol.com.
ENH, tel +258 21 333 490.