The Ministerial Cabinet approves the proposed expansion program of the consortium operating the Pande and Temane Natural Gas Project (NPG)
The Council of Ministers approved, by means of Decree 10/2009 the proposal of expansion of the consortium of which CMH forms part and for which SASOL is the operator. This expansion of the Pande and Temane Natural Gas Project implies the increase in production from the present 120 MGJ/p.a. to a capacity of 183MGJ/ p.a.. The project also foresees the increase in the capacity of the processing plant that will include the processing of condensed gas into LPG, commonly known as domestic gas.
This increase of 63MGJ p.a. will allow the company to enter into a new contract for the supply of gas and it was decided that, of that amount, 27MGJ will be exported to South Africa, a further 27MGJ will supply a power station in Mozambique with a capacity to generate 715 megawatts of electricity, and the remaining 9MGJ will be made available to the Government of Mozambique as “Royalty Gas”, payment in kind of the relevant tax, to be distributed to a number of industries in the local market. The approved project aims at the production of 5,000 tons of LPG (domestic gas) from 2011 onwards.