Mozambique is crucial partner for gas production and energy transition
Mozambique: Total to supply all liquid fuel from November
2:12 CAT | 09 Sep 2020
File photo: Lusa
The French multinational Total will be Mozambique’s new liquid fuel supplier for six months, starting in November, after having been selected in the periodic bids held by the state-owned Mozambican oil importer (Imopetro), João Macandja told Lusa on Wednesday.
Macandja said that, following the usual procedures, Total should present in the next seven days a bank guarantee for the execution of the contract that foresees the sale to the country of 680,000 tonnes of diesel, 275,000 tonnes of gasoline and 60,000 tonnes of aircraft fuel.
The costs will be determined by the value of the barrel of oil at the date of purchase, he added.
Total will replace the British multinational Sahara in supplying liquid fuel to Mozambique.
All liquid fuel for sale in Mozambique (diesel, gasoline and jet fuel) and liquefied petroleum gas (LPG, used as cooking gas), is imported by sea in special freighters.
The process is centralized by law in a single entity, Imopetro, owned by the oil product distributors operating in the country.
Every six months, the public company asks them how much fuel they need for the next half year and launches an international tender to choose who has the best price and quality to supply the whole Mozambican market
Total was chosen at a time when it leads the consortium that will exploit natural gas in the north of the country in what is the largest private investment in Africa.
The multinational leads Area 1 companies in the Rovuma basin for the first mega-enterprise in natural gas exploration in the area scheduled to start production in 2024.
In total, the project will cost about 23 billion dollars (more than 20 billion euros).
Source: Lusa
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