The Ministry of Mineral Resources and Energy and the Norwegian company, Yara International, have signed a memorandum of understanding for the production of fertilizers from natural gas extracted from the Rovuma basin, APA can report on Monday.
The deal was formalized on Monday by the Minister of Mineral Resources and Energy, Letícia Klemens, on behalf of the Mozambican government, and Yara International Vice President for Business Development, Jim Eilertsen.
Mozambique, which has vast offshore gas resources, has awarded gas development projects to Norway’s Yara International, Shell Mozambique and GL Energy Africa.
Yara will develop fertilisers and 30-50 megawatts (MW) of power while Shell Mozambique will produce diesel and 50-80 MW of power.
The signing of the agreement with Yara represents an important step towards the implementation of the 2014 Mozambique Gas Master Plan, which aims to develop and diversify the country’s industrialization process by harnessing the huge natural gas reserves found in the Rovuma basin in the province of Cabo Delgado, northern Mozambique.
In addition, the Government’s Five Year Plan foresees the local production of fertilizers, fuels and energy from natural gas, in order to further strengthen the national trade balance and the availability of reserves in foreign currency, increased income in agriculture, as well as the expansion of the electricity grid throughout the country.
Source: Journal du Cameroun