Mozambique: Petromoc and Sasol consortium may produce 35,000 tons of LNG per year

14 January 2008

Maputo, Mozambique, 14 Jan – Mozambique may produce up to 35,000 tons of liquid natural gas (LNG) per year from gas condensate separation at Pande/Temane, in Inhambane province, Mozambique’s energy minister said Thursday in Maputo.

Salavdor Namburete, who was summarizing events in his sector in 2007, said he was happy to see the progress made towards LNG production by the consortium made up of Petróleos de Moçambique (Petromoc) and South Africa’s Sasol.

Mozambican newspaper Notícias cited a recent feasibility study as saying that in the first stage there were conditions to produce 20,000 tons of gas per year.

The minister, after saying that the country annual spends US$350 million on importing fossil fuels, a figure which could double with oil prices at US$100, noted that his government continued to work on promoting use of biofuels.

“In 2007 we started introducing the use of natural has to fuel vehicles, which is aimed at replacing imported fuels and mitigating the cost of fuel,” the minister said.

In August Petromoc’s first biofuel factory was opened and in Massingir, Gaza province, Procana recently launched its ethanol production project, which is expected to produce 120 million liters of ethanol and fertilizers, at a total investment of US$500 million.

Memoranda of understanding were signed with Germany’s Gesellschaft für Technische Zusammenarbeit (GTZ), Brazil, Angola and Italy for the development of the biofuel sector. (macauhub)