Mozambique sees positive outcome for natural gas development

Mozambique’s tender requesting interested developers to bid for the development of natural gas from the Rovuma Basin has attracted 14 companies.

According to a local daily newspaper, Noticias, a source from the ministry of mineral resources and energy confirmed the development.

It is reported that upon the discovery of natural gas in the Rovuma Basin, off the coast of Cabo Delgado province, the government and the concessionaires agreed that a portion of the gas should be used domestically.

Therefore, in August the government launched the tender to source companies interested in developing projects to use the gas.

The call resulted in proposals from 14 companies, namely: Mitsui, Engro Fertilizer, Shell Mozambique BV, Electricidade de Moçambique (EDM), Yara International, Marubeni, Gl-Africa Energy, Muinvest, Auto-Gas, Epsilon, Jiangsu Sinochem Construction, Union-JNC-JSPDI-VBC-SAL Consortium, Gas Nosu, and MOTSE.

Media reported that the government is interested in proposals for the production of electricity, fertilisers, or liquid fuels for local consumption.

The produce of these projects is expected to add value locally and meet the needs of the domestic market.

Rovuma Basin holds large natural gas reserves

According to the Noticias, the Rovuma Basin has by far the largest known gas reserves in the country holding an estimated 180 trillion cubic feet of gas.

The operators in the two areas where gas has been found are said to be the Italian company ENI (Area Four) and the US company Anadarko (Area One).

Media reported that ENI is currently working on developing the Coral field, where 3.3 million tonnes of gas a year will be liquefied on a Floating Liquefied Natural Gas facility.

Meanwhile, Anadarko plans to produce 12 million tonnes of LNG a year, using two factories (known as “trains”) located onshore at Palma, in the north of the province.

In addition, a joint project will be launched to liquefy the gas found in areas that straddle Area One and Area Four, media reported.

Source: ESI Africa