Sasol reduces gas output at Mozambique plant due to unrest

Reuters
26 Dec 2024
Sasol reduces gas output at Mozambique plant due to unrest

CAPE TOWN, Dec 26 (Reuters) - South African petrochemical company Sasol SOLJ.J has reduced natural gas production at its central processing facility in Temane, Mozambique, to ensure the safety of its staff and assets amid widespread post-election unrest, its spokesperson said.

South Africa receives the bulk of its gas imports via the Rompco pipeline that links onshore gas fields in Mozambique to Sasol's Secunda industrial complex in Mpumalanga province, before being piped onwards to clients in Gauteng and KwaZulu-Natal regions.

"We have informed various gas users and our customers that we are not able to supply gas at full production rates to maintain stability of the gas value chain infrastructure and pipeline network," Alex Anderson, a Sasol spokesperson said late on Wednesday.

Mozambique has been wracked by unrest following a disputed election in October that saw ruling party candidate Daniel Chapo elected as president.

The unrest has already affected the operations of foreign companies including the Australian mining firm South32 S32.AX and led to the temporary closure of the main border crossing with neighbouring South Africa.

Civil unrest escalated when the Constitutional Council on Monday confirmed long-ruling party Frelimo's victory.

On Tuesday, at least 21 people were killed in the unrest which on Wednesday spread to some prisons and saw 33 people killed.

Western observers said the election was not free and fair, saying there were irregularities in the tabulation process and a lack of transparency in the election period.

"The situation around the central processing facility is calm and there has been no security or perimeter breach," Anderson said, adding that the safety of staff, service providers and communities was their main priority.

(Reporting by Wendell Roelf; Editing by Olivia Kumwenda-Mtambo, Alexandra Hudson)

((wendell.roelf@thomsonreuters.com; +27 21 461 3523;))

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