Sun. Jun 21st, 2026

South Africa and Mozambique have inaugurated a new gas processing facility built by Sasol in Inhambane Province, marking a significant milestone in regional energy collaboration under a long-standing production sharing agreement between the two nations.

The facility was launched on the sidelines of the 4th South Africa-Mozambique Bi-National Commission in Maputo and is designed to deliver gas, light oil, and cooking gas for domestic markets while supporting power generation and downstream industrial opportunities.

During the opening ceremony, South Africa President Cyril Ramaphosa described the plant as “a milestone in our joint efforts to expand the energy mix in both countries,” underscoring the importance of public-private sector partnerships in bolstering regional energy security and economic development.

The launch comes as part of a broader agenda at the Bi-National Commission that emphasizes cooperation across sectors. The two governments plan to sign a new Memorandum on Energy Cooperation during the session, while also exploring collaboration in critical minerals, infrastructure, trade, and social development.

For Mozambique, the facility marks a critical step toward leveraging its abundant hydrocarbon resources into tangible domestic benefits, including energy security, industrial growth, and employment. For South Africa, the plant offers a stable supply of natural gas to support power generation while fostering deeper regional integration.

The facility represents a practical demonstration of how neighboring African nations can work together to develop shared energy resources, create economic opportunities, and strengthen energy independence across the Southern African region.Source: energycapitalpower.com