International companies awarded natural gas supply in Mozambique

The Ministry of Mineral Resources and Energy has awarded large quantities of natural gas for projects in the domestic market to be undertaken by Yara International, Shell Mozambique BV and GL Energy Africa.

These three companies have been awarded a total of 462 million cubic feet a day of natural gas. They are the successful bidders from a tender launched on 26 August last year which brought in 14 bids.

Shell requested between 310 and 330 million cubic feet of gas a day to produce 38,000 barrels a day of liquid fuels (gas-to-liquid diesel, naphtha and kerosene), plus 50 to 80 megawatts of electricity.

The Norwegian company Yara International requested 80 to 90 million cubic feet a day to produce between 1.2 and 1.3 million tonnes of fertilizer a year. This project will generate between 50 and 80 megawatts of electricity.

The London-registered GL Energy Africa has a much larger electricity project. It requested 41.8 million cubic feet of gas a day to generate 250 megawatts of power.

Although the Ministry does not state specifically the origin of the gas, it will almost certainly come from the huge fields of natural gas, discovered in the Rovuma Basin off the coast of the northern province of Cabo Delgado. The fields in areas one and four of the Rovuma Basin, operated by the US company Anadarko and ENI of Italy, respectively, are known to hold at least 160 trillion cubic feet of gas between them.