Petrochemical giant Sasol, the world's largest oil from coal producer, is one of three companies said to be picking up the US$1.3-billion (R13.6-billion) tab for a new power station being jointly built by South Africa and Mozambique.

Mozambican power utility Electricidade de Mocambique said in a statement on Thursday that it and South African power utility Eskom had agreed to construct a 610 to 680 megawatt gas-fired power station at Moamba, 60 kilometres north-west of Maputo.

According to Mozambican news agency Agencia de Informacao de Mocambique, the cost of the power station would be borne by EDM, Mozambican holding company Intelec as well as Sasol, which operates the natural gas fields in the southern Mozambican province of Inhambane.

A statement issued by EDM confirms that Inhambane gas would be used to fire the Moamba power station.

No clarification was provided on the projected project timeline.

EDM chairperson Manuel Cuambe said in the statement that EDM was open to cooperation with Eskom in the challenging times ahead, and particularly in developing projects that will have a major impact on the lives of Mozambican and South African citizens.

This followed a meeting between EDM and Eskom officials last week where Eskom discussed cooperation between the two countries.

Eskom is seeking reassurance that it has Mozambique's support particularly during the hosting of the soccer World Cup in 2010.

Agencia de Informacao de Mocambique claimed that that Mozambique was one of the few countries in southern Africa with a surplus of power, and Eskom was considering increasing its purchases of Mozambican electricity during the time of the global sporting event.

The two parties have agreed to meet in February for further discussion on EDM's portfolio of projects.

Sasol is still to confirm its participation in the Moamba project.

At 12pm shares in Sasol were trading 1.38 percent or 3.50 rand firmer at 257 rand on the JSE.