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Economy

PetroSA targets Mozambique gas in new sales deal

Date: Apr 17, 2024

South Africa's (SA) PetroSA expects the first flows of gas into the country from a deal with Mozambique's national energy company, Empresa Nacional de Hidrocarbonetos, later this year, officials said.

This is amid efforts to shore up supplies ahead of a potentially crippling shortage.

Handed a gas trading licence by regulators in March, State-owned oil and gas company PetroSA has moved quickly to secure a deal for an initial 2 petajoules of gas a year (PJ/a), with the scope to rise to 200 petajoules eventually.

That would be enough to supply scores of industrial gas users, including steelmaker ArcelorMittal, which currently relies on around 190 PJ/a, mainly supplied by SA petrochemical firm Sasol.

Sasol has warned customers that it will significantly restrict supplies in a couple of years as its Mozambican gas fields run dry.

PetroSA wants to form a joint venture (JV) with ENH to woo potential gas clients in energy-starved SA and intends to replicate the JV model at Mossel Bay to trade gas from offshore fields discovered by TotalEnergies to the Cape market.

--Reuters--