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This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Summary of Project Information (SPI)
Project number 10983
Project nameENH Equity Finance in Mozambique-South Africa Natural Gas Project
SectorOil and Gas Production (Includes Development)
Environmental categoryA
Date SPI disclosedAugust 28, 2003
Projected board dateOctober 21, 2003
Previous EventsInvested: March 30, 2006
Signed: December 19, 2003
Approved: November 20, 2003

Project sponsor and major shareholders of project company
The project sponsor is Sasol. Based in Johannesburg, South Africa, Sasol is a world leader in the commercial production of liquid fuels and chemicals from coal and crude oil. The Sasol Group generated total sales of approximately $6 billion for FY 2002 and is the fifth-largest listed South African company, with a market capitalization in excess of $5 billion. In FY 2002, more than 50% of the operating profit was derived from the synthetic fuels business, 25% from the chemical business, 12% from the crude oil activities and the remainder from Sasol’s mining and other activities. Sasol employs more than 30,000 people. Sasol was founded in 1950 and became a private sector company when it was listed on the Johannesburg Stock Exchange in 1979. It is also listed on the NASDAQ Stock Exchange. Sasol has been rated BBB for its long-term foreign currency debt, one notch higher than the sovereign rating for South Africa.

The project will be implemented by an UJV comprising the following parties: Sasol (70%), CMH, an ENH subsidiary (25%) and IFC (5%).

Total project cost and proposed IFC investment
The project cost for the first phase of the upstream project is estimated to be $220million. The proposed IFC investment is an equity of up to $18.5 million.

IFC investment as approved by Board
18.5 million (USD)
Product LineIFC Investment (million USD)
Risk Management 

Location of project and description of site
The gas fields and the processing facilities will be located in the Inhambane province in Mozambique. Natural gas will be transported by a 890 km pipeline to Secunda in South Africa.

Description of company and purpose of project
Gas was discovered in Mozambique in 1961 but due to the unstable country situation, no serious effort was made to utilize this resource till now. A project to develop the Pande and Temane gas fields and transport gas through a 890 km pipeline to South Africa has been sponsored by Sasol. ENH, the national petroleum company, is a 30% partner in the upstream unincorporated joint venture (UJV) which will develop the gas fields and the associated processing facilities. IFC has been invited to invest for a 5% shareholding in the UJV.

Environmental and social issues - Category A
This is a category A project according to IFC’s Environmental and Social Review Procedure. Environmental, social, health and safety issues associated with this project during construction and/or operations may include: endangered species; air emissions, including cumulative effects of this project and other actual and/or proposed projects; contamination of the proposed site from current or past oil and gas operations; liquid and solid waste disposal; noise from construction of all of the facilities and operation processing plant; global issues related to climate change; fire protection; emergency response; impact on culturally sensitive properties such as artifacts; resettlement of people or loss of land and other economic assets caused by land acquisition or access impediments.

To view the environmental documents for this project, click here

Location of environmental documents in locally affected community
The complete set of Category A documentation is available locally at the following locations:

- World Bank offices in Maputo
- Consulting firm Impacto Lda. Maputo
- Ministry for the Coordination of Environmental Affairs National Department – Mozambique (MICOA), Maputo, Xai Xai, Inhambane, Matola
- Directo Nacional de Carvao e Hidrocarbonetos (DNCH), Maputo
- Sasol Temane Lda offices, Maputo
- Municipal Office, Matola, Inhassoro, Vilanculos
- Governors Office, Maputo, Xai Xai, Inhambane
- District Administrators Office, Vilanculos, Inhassoro, Funhaloro, Mabote, Chowkwé, Moamba, Maputo, Vilanculos
- Public libraries, Maputo, Matola

South Africa
- Public libraries, Bethal, Badplaas, Barberton, Kanyamazane, Komatipoort, Malelane, Nelspruit
- Mark Wood Environmental Consultants, Honeydew, Johannesburg
- Sasol Petroleum International (Pty) ltd., Rosebank Johannesburg
- Sasol Technology (Pty) Ltd., Secunda

In addition the documentation can be accessed from the Sasol Natural Gas Project Website http://w3.sasol.com/natural_gas/

To contact the project company, please write to:
Empresa Nacional de Hidrocarbonetos (ENH),
Avenida Fernao Magalhaes 34,
P. O. Box 4787,
Maputo, Mozambique

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