Foreign companies plan to process natural gas in Mozambique

3 February 2017

Proposals submitted by Yara International, Shell Mozambique and GL Energy Africa were awarded an international tender for the development of natural gas projects in Mozambique, announced the National Oil Institute in a statement recently published in Maputo.

Norway’s Yara International, will produce fertilizers and between 30 to 50 megawatts of electricity, Shell Mozambique will produce diesel and between 50 to 80 megawatts of electricity and GL Africa Energy, a Kenyan company based in London, will produce 250 megawatts of electricity from natural gas.

The international public tender was launched on 26 August and ended on 17 November 17, 2016, and the National Oil Institute received 14 proposals for various projects submitted by companies or groups: Mitsui, Engro Fertilizer, Shell Mozambique BV, Electricidade de Moçambique, Yara International, Marubeni, GL Africa Energy, Muinvest, Auto-Gás, Epsilon, Jiangsu Sinochem Construction Company, the Union-JNC-JSPDI-VBC-SAL consortium, Gas Nosu and MOTSE.

These projects will process part of the natural gas that will be extracted from existing large deposits in at least two blocks – Area 1 and Area 4 – in the Rovuma basin in northern Mozambique on the border with Tanzania.

The two blocks have as operators US group Anadarko Petroleum and Italy’s ENI, the latter – Area 4 – is the one that is closest to starting operatiions. (macauhub)