PetroSA Pursues Mozambique Gas Under New Sales Deal

South Africa’s National Oil Company (NOC) PetroSA is set to receive gas from Mozambique’s NOC ENH under a new sales deal, with initial deliveries expected later this year.

Facilitated by PetroSA’s recent acquisition of a gas trading license, the deal involves an annual supply of 2 petajoules (PJ) of gas, with the potential to increase to 200 PJ over time.

This initiative aims to mitigate impending gas shortages, particularly impacting industrial consumers such as steelmaker ArcelorMittal, which heavily relies on around 190 PJ supplied by global energy company Sasol.

With Sasol anticipating dwindling gas resources in the future, PetroSA is pursuing a joint venture (JV) with ENH to enter South Africa’s energy market. The company also plans to replicate this JV model to trade gas from offshore fields discovered by multinational energy company TotalEnergies.

The gas will be transported through the Republic of Mozambique Pipeline Investments Company (ROMPCO) pipeline, connecting Mozambique’s Pande and Temane fields to South Africa while distributing gas via Sasol’s pipeline network. ROMPCO is a joint venture between the government of South Africa, the government of Mozambique and Sasol.

Currently, PetroSA is in discussions for transportation agreements with Sasol and ROMPCO.