Sasol lets contract for first major Mozambique upstream project

March 27, 2002
Sasol Petroleum Temane Ltda., a unit of Sasol Ltd., let a $130 million contract to Foster Wheeler South Africa (Pty.) Ltd., a unit of Foster Wheeler Ltd., for the engineering, procurement, and construction management of an upstream gas facility to be built at Temane, Mozambique. It is part of a project that is the first major upstream and petrochemical development in Mozambique.


By OGJ editors
HOUSTON, Mar. 27 -- Sasol Petroleum Temane Ltda., a unit of South Africa's Sasol Ltd., let a $130 million contract to Foster Wheeler South Africa (Pty.) Ltd., a unit of Foster Wheeler Ltd., for the engineering, procurement, and construction management of an upstream gas facility to be built at Temane, Mozambique. It is part of a project that is the first major upstream and petrochemical development in Mozambique.

Based on the contract, Foster Wheeler will develop gas gathering and processing facilities in Temane gas field to collect sales-quality gas for transport to South Africa. The development will include the infield flow lines from 11 well sites and the central processing facilities, Foster Wheeler said. The facility will be able to produce 111.6 bcf/year of sales-quality gas.

Sasol late last year signed a deal with Mozambique that would govern construction of a $1.2 billion pipeline to move gas from that nation to South Africa (OGJ, Sept. 24, 2001, Newsletter, p. 9). Completion of the line, barring certain approvals, is expected in the first half of 2004.
The overall project comprises the gas field development in Mozambique, the 660 mm pipeline extending 865 km to Secunda in South Africa, the conversion of Sasol's current town gas pipeline network, and the supply of gas to Sasol customers in South Africa.