Sasol's proved gas reserves at the Pande and Temane concession in Mozambique fell 25.6% in a single year, dropping from 440.6 billion cubic feet (Bcf) to 327.9 Bcf between June 2025 and June 2026, according to an official company report. The decline intensifies supply risk for downstream consumers and raises structural questions about the long-term viability of Mozambique's onshore southern gas corridor beyond 2030.
Sasol confirmed that production decline at the Pande and Temane Production Sharing Agreement concession began in 2024. The company acknowledged in its report that new investments may only temporarily mitigate the reduction in supply, stopping short of presenting a credible long-term remedy for the reserve depletion trajectory. The pace of decline — more than a quarter of proved reserves within twelve months — signals that the fields are moving into a mature production phase that conventional well interventions are unlikely to reverse at scale.
Two alternatives are identified in the report as potential continuity options. The Inhassoro gas field, located in the same southern Mozambique basin, is cited as a near-term supplemental source. The proposed Matola LNG terminal, situated near Maputo, is identified as a longer-range infrastructure solution that could provide access to imported or regionally sourced gas to compensate for declining domestic output. Neither alternative is presented with a final investment decision, timeline, or confirmed capacity in the report.
The reserve reduction carries significant implications for Mozambique's domestic energy supply and for South Africa, where Sasol's Mozambican gas feeds the Rompco pipeline and underpins industrial and power generation demand in Gauteng and beyond. Any shortfall in supply from Pande and Temane would require either accelerated domestic alternatives, increased LNG imports through a terminal such as Matola, or demand-side adjustments among industrial gas consumers in both countries.
The Matola LNG terminal concept, if progressed to FID and construction, would represent a material infrastructure investment requiring marine, storage, and regasification components. Inhassoro development, depending on scope, could involve additional well drilling, gas gathering, and tie-in engineering. At this stage, both remain prospective options without confirmed procurement processes.
