Mozambique may produce gasoline from natural gas in 2016

1 June 2011

Munich, Germany, 1 June – Mozambique is expected to start producing gasoline from natural gas as of 2016 according to a German-Mozambican project presented Tuesday in Munich to the Mozambican Prime Minister, Aires Ali, Mozambican daily newspaper, Notícias reported.

Under the terms of the memorandum signed in Munich, the two partners – Mozambican group Insitec and German company GigaMethanol BV – propose to build a refinery in Inhambane, where the natural gas wells of Pande and Temane are located, to transform the natural gas into 3.5 million tons of methanol.

Of that amount, 2.5 million tons would be exported, 500,000 tons would be set aside to be transformed into gasoline and the remaining 500,000 tons would be used as a raw material to manufacture glue, adhesives, solvents and plastics.

According to the newspaper, construction of the refinery is estimated to cost US$3.5 billion, which would be secured from the international financial system.

Gasoline accounts for around 40 percent of the US$600 million that Mozambique spends each year on purchasing fuel.

Notícias also reported that since 2008 the two partners had been studying the possibility of setting up a petrochemical unit for methanol and ammonia production in Mozambique, and so far had invested US$15 million in studies related to the project.

The refinery, as well as having GigaMethanol technology for producing methanol from natural gas, will also have MTG (Methanol to Gasoline) technology, which will make it possible for Mozambique to become a gasoline producer as of 2016. (macauhub)