AfrOil: Sasol’s gas FID

South Africa’s Sasol has made a final investment decision (FID) on the development of two onshore natural gas fields in neighbouring Mozambique. This move will allow the company to move forward with this $760mn project, which will include overland gas shipments to South Africa, LPG production for the local market and the construction of a gas-fired thermal power plant (TPP).

Gas for the project will come from the Pande and Temane fields, which Sasol is developing under a production-sharing agreement (PSA). The fields may hold as much as 1.2 trillion cubic feet of gas (32.98bn cubic metres), along with small amounts of crude oil. They are due to begin production in 2024.