Mozambican state oil and gas company Empresa Nacional de Hidrocarbonetos (ENH) has agreed with South Africa’s Sasol and Italy’s ENI to carry out a pre-feasibility study for construction of a factory to transform natural gas into liquid fuel.
The study is the immediate result of a memorandum of understanding signed by all three companies and the factory, which will be fed by natural gas extracted in the Rovuma basin is expected to have an initial production capacity of 96,000 barrels of liquid fuel per day.
ENH and ENI are partners in the Area 4 block of the Rovuma basin and Sasol is carrying out the Pande and Temane project with ENH and has the technology to transform gas into liquid derivatives.
According to Mozambican daily newspaper Notícias the study is the result of efforts by ENH to find a technical partner to build a gas-to-liquids factory with a view to producing liquid fuels that are essential to the Mozambican economy.
The chairman of ENH, Nelson Ocuane, was cited in a statement published by the company as saying that, alongside liquid natural gas (LNG) production, which is the anchor project of gas exploration in the Rovuma basin, the company has prioritised finding projects for mass local use of the natural gas.
“Establishing a project of this kind will allow the country to produce liquid fuels from natural gas, such as diesel and petroleum, for example, and to reduce its dependence on imports,” said Ocuane. (macauhub/MZ)