Sasol extends gas production timeline to support LNG transition

SASOL, a leader in the energy and chemicals sectors, has announced an important expansion in its Mozambique operations and locally, extending the timeline for South Africa's transition to liquid natural gas (LNG).

- EDWARD WEST

The company's President and CEO, Simon Baloyi, revealed in an integrated report released on Friday that the gas production plateau has now been extended to the end of its 2028 financial year with additional investments, offering a crucial reprieve to South Africa's industrial gas users who had been anxious about potential shortages in the country.

Previously, concerns had arisen when Sasol indicated that its gas reserves in Mozambique would be depleted by 2028.

However, through its innovative solutions, the company is now poised to offer a bridging strategy that incorporates methane-rich gas, which will be redirected from their operations at Secunda. This bridging supply is intended to operate from mid-2028 to mid-2030, providing stability and support, while the necessary LNG infrastructure is developed to ensure long-term growth and sustainability within the market.