Mozambique to have kerosene and domestic gas refineries

22 August 2006

Maputo, Mozambique, 22 Aug – Mozambican state oil company, Petromoc, plans to invest some 16 million euros on setting up two refineries for domestic gas and kerosene, the company said in Maputo Monday.

Despite being rich in natural gas, Mozambique imports all its gas derivatives due to the country’s lack of financial capacity to set up a refinery, and recently faced a serious domestic gas crisis, following supply problems by South African suppliers.

In order to overcome this shortfall the Government authorized Petromoc to apply around 16 million euros to installing a domestic gas refinery and a kerosene refinery, Petromoc’s chief executive, Francisco Casimiro said Tuesday.

Casimiro said that construction of the domestic gas refinery would cost around 11 million euros and the kerosene refinery was estimated to cost around 5 million euros.

Petromoc’s chief executive added that building the refineries would take 20 months, and feasibility studies for the projects were currently underway, involving Mozambican experts and from South African company SASOL.

SASOL is exploring the main natural gas fields in Mozambique, located in Inhambane province in the south of the country, as part of a concession deal signed with the Mozambican state.

Under the terms of the agreement, the South African company built a gas pipeline over 800 kilometers long linking the gas reserves to South Africa’s Secunda industrial area, where the gas is used. (macauhub)