A Sasol facility in Mozambique. File picture: Juda Ngwenya

Johannesburg - An agreement concerning the Mozambican gas pipeline between South Africa and Sasol Limited will expire on Tuesday, the National Energy Regulator of SA (Nersa) said.

“The expiry of the agreement requires Sasol Gas to shift from its current market value pricing approach to a non-discriminatory pricing regime prescribed in the Gas Act,” Nersa spokesman Charles Hlebela said in a statement on Monday.

“Although most of the clauses in the agreement are due to expire, some will remain in force. Notably, clause 4 regarding Sasol Gas' obligation to supply a minimum of 120 million gigajoules of gas to South African markets for a period of 25 years.”

Hlebela said in line with the mandate, Sasol has restructured gas prices for customers and has signed supply contracts with 82 percent of its customers based on new price structures.

Hlebela said it would exercise its regulatory powers of approving maximum gas prices for all licensees.

The new price structures would be effective from 26 March.

“According to the information submitted by Sasol Gas to the energy regulator, gas prices offered to its customers are well below the maximum prices approved in 2013,” said Hlebela.

Nersa has also approved transmission tariffs and a trading margin for Sasol Gas, which would be added to the actual price offered to customers. - Sapa