Abstract
This paper contains the results of a case study aiming at assessing the extent to which the public-private Sasol Natural Gas Project between South Africa and Mozambique contributes to fostering regional cooperation and integration and to identifying operational challenges that are specific for multinational operations. The core objective of the project is to develop the previously untapped natural gas resources available in Mozambique in order to supply and convert Sasol’s coal-burning petrochemical plants to natural gas. This objective fits both governments’ goals to develop gas market for Mozambican and to diversify the energy supply mix for South African market. Also, the project serves broader development objectives of strengthening the bilateral economic ties between Mozambique and South Africa; thus, contributing to regional cooperation and integration. The paper draws on project documentation including project completion report and supervision reports carried out by donors, as well as on results of a field mission in South Africa and Mozambique between 26 November and 9 December 2011.
Highlights
The case study aims to assess the extent to which the Sasol Natural Gas Project is relevant and effective in fostering the cooperation and integration of the economies of Mozambique and South Africa
The Sasol Natural Gas Project is considered as a successful private public partnership
The project is fully integrated in a value chain that benefits stakeholders in both Mozambique and South Africa
Summary
The case study aims to assess the extent to which the Sasol Natural Gas Project (hereafter the project) is relevant and effective in fostering the cooperation and integration of the economies of Mozambique and South Africa. It looks at the sustainability of the benefits of the project and it assesses if these are equitably shared. The study draws on a review of project documents including the appraisal reports, supervision mission reports and the project completion report, as well as other documents available including reports by different donors It is based on the results of a field mission undertaken in the Republic of South Africa and in Mozambique between 26 November and 9 December 2011
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