Natural gas consumption on the rise in Mozambique

17 November 2011

Maputo, Mozambique, 17 Nov – Consumption of natural gas is increasing significantly in Mozambique with its use as a replacement for imported liquid fuels, the country’s Mining Resources Minister, Esperança Bias said Wednesday in Maputo.

Speaking to members of the Mozambican parliament the minister said that this replacement was occurring in industries such as the Mozal aluminium foundry, cement company Cimentos de Moçambique, Fasol and Coca-Cola, in vehicles and in supplying electricity to the districts of Vilanculos, Inhassoro, Nova Mambone and the islands of the Bazaruto archipelago, in Inhambane province.

Esperança Bias noted that in 2000 the government had signed a contract for production of natural gas with a consortium of South African group Sasol and Mozambican state oil and gas company ENH. This contract had made it possible to increase production from less than 1 million gigajoules per year to 120 million gigajoules per year.

Work to expand this facility, in which to date some US$1 billion has been invested, began in 2004 and ended this year with production capacity increasing to 183 million gigajoules per year.

Mozambique has stakes of 25 percent in the natural gas fields and in the transport facilities (gas pipeline).

As well as the benefits from payment of taxes outlined in current legislation and of a specified amount of gas sold on the domestic market Mozambique has received dividends from its stake in the facility, which in 2010 totalled US$5 million. (macauhub)