Government extends deadline for proposals on domestic use of liquefied gas – Mozambique

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Government extends deadline for proposals on domestic use of liquefied gas – Mozambique

9:45 CAT | 19 Oct 2016

Further Africa (File photo)

Companies now have until November 17 to submit project proposals for the supply of liquefied natural gas to the Mozambican domestic market.

After the discovery of hydrocarbons in Cabo Delgado, the government and the concessionaires agreed on the need to provide a certain amount of natural gas for domestic industrial projects.

As a result, last August the government launched a public tender for the selection of companies interested in the design, investment and development of liquefied gas projects such as power generation, fertiliser production and liquid fuel for local consumption.

Initially, the deadline for tenders was 17 October, but this week the government announced a one-month extension. It is understood that the extension comes at the request of parties participating in the tender.

The tender aims to promote local natural resources and contribute to meeting the needs of the domestic market for services and consumer goods currently imported.

Recently, companies like Petromoc have expressed interest turning natural gas into diesel fuel, potentially making Mozambique self-sufficient in this type of fuel, with concomitant foreign exchange savings.

Data presented by Petromoc at the time indicated that the project would cost US$5.5 billion in capital investment and would generate approximately 15,000 direct and indirect jobs throughout the value chain.

The Rovuma sedimentary basin holds the largest natural gas reserves discovered in Mozambique so far. More than 180 trillion cubic feet of hydrocarbons were discovered.

The US multinational Anadarko and Italian Eni are the main operators in the Rovuma area, with another US oil giant, ExxonMobil, set to enter the field as a result of the fifth Mozambique hydrocarbon exploration tender.

Source: Noticias