South African energy firm Sasol has been granted a significant 30-year concession by Mozambique to construct and operate LNG facilities. This strategic agreement includes rights to the 865-kilometer Rompco pipeline, in which Sasol maintains a 20 percent ownership stake. The deal substantially strengthens the company’s position within the southern African gas market at a pivotal moment.
Financial Performance and Market Context
Sasol reported a notable turnaround for fiscal year 2025, posting a net profit of 6.8 billion rand after having recorded a loss the previous year. The company’s shares demonstrated strong performance, appreciating by 39 percent through the end of August and trading at 113.73 rand. This positive momentum occurs as the company makes significant strategic moves in its gas supply chain.
Shifting Gas Dynamics and Regional Dependence
The concession arrives as South Africa contends with declining domestic gas production. Mozambique is consequently emerging as a crucial energy partner. The newly authorized infrastructure is designed not only to transport LNG from various projects but also to function as the primary logistical network for commercializing the Rovuma basin’s gas potential.
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A tangible shift in gas volumes is already underway, with Sasol moving supply to processing facilities within Mozambique. Starting mid-2026, this reallocation is expected to impact export availability for South Africa—a direct result of the depletion of mature fields like Pande-Temane after more than three decades of continuous production.
This development underscores Sasol’s growing reliance on regional gas supplies, a strategic direction that exists alongside CEO Simon Baloyi’s focus on boosting output at the Secunda facility in South Africa and the potential separation of the chemicals business by 2028.
Path Forward and Key Dates
The critical question for investors is whether Sasol can leverage these new gas infrastructure investments to move beyond the share price volatility observed over the previous quarter. Initial indications may arrive on January 22, 2026, when the company is scheduled to release its second-quarter earnings report.
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