Sasol’s Mozambique Gas Operations Deliver Over $670 Million in Taxes Over 11 Years
Sasol’s natural gas operations in Mozambique have generated more than $670 million in tax revenue for the Mozambican state over the past 11 years, highlighting the growing fiscal importance of the country’s gas industry.
The South African energy and chemicals company’s contribution comes from its exploration and production activities in the Pande, Temane and Inhassoro fields in Inhambane Province.
Sasol Petroleum Temane (SPT), which operates the Petroleum Production Agreement (PPA), has consistently ranked among Mozambique’s largest taxpayers, placing first in 2023 and third in 2022, 2024 and 2025.
$76 Million in Taxes Paid in 2025
Sasol Petroleum Temane generated approximately $321 million in revenue in 2025, with profit before tax reaching about $183 million and profit after tax approximately $123 million.
The operation contributed around $76 million in taxes during the year, including about $66 million in corporate income tax, $4.5 million in personal income tax, $4.3 million in VAT and additional royalties and other taxes.
Under the PPA, SPT holds a 70% interest, while state-owned Companhia Moçambicana de Hidrocarbonetos (CMH) holds 25% and the International Finance Corporation (IFC) owns 5%.
CMH’s 25% participation has generated more than $800 million through production sharing, further demonstrating the financial contribution of Mozambique’s gas resources to the state.
Gas Production Supports Mozambique’s Energy Supply
Beyond tax revenues, Sasol’s operations are supplying gas for Mozambique’s domestic energy infrastructure.
Under a separate Production Sharing Agreement, Sasol Petroleum Mozambique holds a 100% interest in a concession with a 25-year production period running from 2025 to 2050.
The project is expected to produce around 23 million gigajoules of natural gas annually, equivalent to approximately 552 million cubic metres, for the Temane Thermal Power Plant. The gas will support up to 450 MW of electricity generation capacity.
The project also provides for annual production of approximately 30,000 tonnes of LPG for the domestic market and 4,000 barrels per day of light oil for export, while surplus gas is supplied to Sasol’s operations in South Africa.
Gas Revenues Support Local Development
Mozambique is also directing a portion of petroleum tax revenues towards communities and development projects in producing areas.
Under national legislation, 10% of Petroleum Production Tax revenue is allocated to local development, with 7.25% directed towards strategic projects in provinces and districts and 2.75% allocated to communities directly affected by oil and gas operations.
In Inhambane Province, approximately $20 million in Petroleum Production Tax revenue was generated under the 2026 Economic and Social Plan and State Budget. About $2 million of this amount was earmarked for local development initiatives.
Gas Sector Strengthens Mozambique’s Resource Economy
Sasol’s contribution illustrates the broader economic significance of Mozambique’s natural gas sector, which is generating government revenue while supporting electricity generation, domestic LPG supply and regional energy trade.
With cumulative net gas production from the Pande, Temane and Inhassoro fields reaching approximately 3,306 petajoules by October 2025, the country’s gas resources continue to play an increasingly important role in its energy and economic development.