Heavy rains in Mozambique have disrupted Sasol’s condensate transport and forced a temporary reduction in gas production, but the company says supplies to customers remain uninterrupted and operations are not materially affected. The heavy rains that swept through Mozambique inflicted damage on Sasol’s operations there but the petrochemicals giant said that its gas supplies were still flowing to customers. “The recent severe weather conditions in Mozambique which caused damage to road infrastructure between Maputo and the CPF production facilities in Mozambique have resulted the interruption of road transportation of condensate from the CPF facilities,” the company said in response to Daily Maverick’s queries.
Condensate is a light oil and Sasol is unable to truck it out at the moment. “Managing the available storage for condensate at the facility has necessitated a temporary reduction in gas production and supply to our Secunda and Sasolburg operations… Gas supply to the external market remains uninterrupted.
Our operations continue according to plan.” Sasol has not issued a Stock Exchange News Service announcement or public statement because the issue is not having a material impact on its operations. Still, it underscores the ongoing consequences of increasingly frequent extreme weather events on a range of business sectors and highlights the underreported damage that has been wreaked in Mozambique. Egoli Gas issued a statement to notify consumers “about Sasol Gas’ declaration of Force Majeure in terms of the Gas Supply Agreement between Sasol Gas (Pty) Ltd and Egoli Gas, which may affect supply to customers”.
Read Full Article on Daily Maverick
[paywall]
Sasol spokesperson Alex Anderson said this was a precautionary measure and that the Force Majeure was “not in place. It’s just in case.” “Should conditions in Mozambique deteriorate further, Sasol may be required to request a reduction in customer gas usage on short notice. Egoli Gas will continue to monitor the situation closely and will keep you informed of any material developments,” Egoli Gas said.DM
[/paywall]
