Mozambique: Natural gas production from Pande, Temane fields to double from 2010

11 April 2008

Maputo, Mozambique, 11 April – Production of natural gas from Pande and Temane in Mozambique is set to increase by 50 percent from 2010 to respond to increasing domestic demand, as well as in neighboring South Africa, Natural Resources Minster Esperança Bias has said.

Cited Thursday by the Noticias daily newspaper, Bias said current estimates of gas output from Pande, in Gaza province, and Temane, near Beira, are for 120 gigajoules (around 3 billion cubic meters) by the end of 2008.

The minister said studies are in course to use gas from Pande and Temane to produce liquefied petroleum gas (LPG) and paraffin for lamps.

Mozambique’s natural gas ventures were launched in 2004 and the project was awarded to a consortium, of Sasol Petroleum Temane (SPT), the Mozambican unit of South Africa’s Sasol, with a 70 percent shareholding, the Mozambican Hydrocarbons Company, with a 25 percent stake, and International Finance Corporation, with a 0.5 percent shareholding.

The consortium has production rights in the Pande and Temane gas fields for 30 years and a contract to sell gas and supply 120 megajoules per year for 25 years.

Mozambique’s energy minister, speaking at the 7th Meeting of Economists from the Portuguese Language Countries, added that owing to high demand the gas reserves from Pande and Temane were already allocated to buyers under long-term contracts.

Mozambique has geological potential for other major gas discoveries to be made in future, he added. (macauhub)