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Sasol, Eni to undertake gas-to-liquids plant study in Mozambique

The logo of oil company Eni-Saipem is pictured at its headquarters in Rome February 8, 2013. REUTERS/Alessandro Bianchi

JOHANNESBURG (Reuters) - South African petrochemicals group Sasol Ltd will conduct a study to build a gas-to-liquid (GTL) plant in Mozambique, it said on Thursday.

Sasol said in a statement it would conduct the pre-feasibility study together with Italian oil and gas group Eni and Mozambique’s national oil company, Empresa Nacional de Hidrocarbonetos.

The plant would use gas from the Rovuma Basin in Northern Mozambique, and if viable would be the county's first GTL facility.

Mozambique has seen a flood of investment into its mining and energy sectors in the last few years by foreigners who want to develop the country's coal and gas reserves.