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Foster Wheeler will build joint venture gas compression station

01 February 2008

The Republic of Mozambique Pipeline Investment Company (Rompco) has announced the construction of a R1.1 billion gas compression station, in Komatipoort. Joint partners in Rompco are Sasol, which has a 50% shareholding and iGas and Compania Mozambicana de Gasuduto with 25% each. A Sasol statement suggested that construction would start by mid-2008, and that the engineering, procurement and construction management contract had been awarded to Foster Wheeler South Africa.

The plant would facilitate a 20% expansion of natural gas delivery from Mozambique to South Africa by the end of 2009, increasing gas delivery capacity from the current 120-million gigajoules a year to about 147-million gigajoules a year.

The company explained that two gasturbine-driven compressor units, and ancillary equipment, would be used at Komatipoort to increase gas flow rates in Rompco's 865-km-long cross border pipeline that transports the natural gas from the Pande and Temane gasfield in Mozambique to Sasol's operations at
Secunda and Sasolburg, in South Africa.

The additional gas would be used as part of the first phase of a planned 20% expansion of Sasol Synfuel's capacity at Secunda over the next eight years. Threequarters of the additional capacity at Synfuels would use natural gas as feedstock with its more benign effects on the environment and the balance would be
based on fine coal reserves. Some of the first phase additional gas is earmarked for the gas-turbine-driven electricity generators recently ordered by Sasol Synfuels in Secunda. Commissioning of both the pipeline compressor station as well as the gas turbines is expected by late 2009.

Last November, Sasol approved plans to spend R2.5-billion to build a 280-MW gasfired power station at its Secunda plant. The power plant will eventually use mainly
flare gas but would be commissioned with natural gas supplied from its operations in Mozambique.

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