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Organization Name

Sasol Ltd.

Case Story Title

Finding the balance for sustainability-Mozambique Natural Gas Project

Case Story Date

2003/03/05

Issues Addressed

  • Principle 7 - Businesses should support a precautionary approach to environmental challenges
  • Principle 8 - Undertake initiatives to promote greater environmental responsibility
  • Principle 9 - Encourage the development and diffusion of environmentally friendly technologies
  • Sustainable Investments in LDCs

Case Story Category

Partnership Project

Countries of Impact

Mozambique

Case Description

Sasol, a historically coal based petro-chemical company, has invested USD 1.2 billion to develop Mozambique's Temane and Pande gas fields. The project covers the development of the gas fields and the construction of a central processing facility in Mozambique, as well as the construction of an 865 km cross border pipeline for the delivery of the gas to Sasol's Sasolburg and Secunda plants in South Africa, and the conversion of both plants to process gas. Sasolburg will convert fully and use gas as its primary feedstock, while Secunda will use gas as supplementary feedstock. The first gas from Mozambique is scheduled to reach Sasol in February 2004. Construction work is underway.Significant economic, social and environmental benefits will be realised through new job opportunities in both countries. Throughout the project's 25 year life span, Mozambique is projected to earn some USD21.4 in taxes and royalties, estimated to increase the current domestic product by about 20%. Substantial reductions in carbon dioxide, sulphur dioxide and nitrous oxide emissions will be realised, and odorous hydrogen sulphide emissions will be eliminated. Solid waste will be halved and water consumption decreased by as much as 30%. The more favorable investment environment likely to be brought about by the user friendly energy source may, however, not be sufficient consolation for the miners who will lose jobs when coal mining ceases. Sasol has however already set in motion actions intended to address this challenge by retraining some of the miners and redeploying them in other areas in the company.

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