Mozambique Oil & Gas: Mozambican government approves master plan for natural gas

The Master Plan for Natural Gas, which is intended to promote Mozambique’s development by exploring this natural resource, was approved by the country’s Council of Ministers, the Natural Resources Minister said Tuesday in Maputo.

Minister Esperança Bias said that the plan was a detailed roadmap for political, strategic and institutional decision-making on which to base investments in the natural gas sector.

“The initiatives carried out alongside natural gas exploration include production of diesel, electricity, fertiliser as well as methanol,” said the minister cited by Mozambican daily newspaper Notícias.

According to the minister revenues from exploration of natural gas reserves, estimated to total 170 trillion cubic feet in the Rovuma basin, are also expected to contribute to development of other areas, such as agriculture and electrification of the country.

“For this to happen there is a plan to lay an oil pipeline linking Palma to Maputo, which will be the backbone of the gas supply, with branches that will supply industries throughout the country,” the minister said without specifying the level of investment or when the pipeline would be installed.

During the meeting the government approved two decrees approving the concession contracts of two hydroelectric facilities. The first of these is located in Boroma, in the Changara district of Tete province, which will produce 215 megawatts of electricity and will cost approximately US$600 million.

The second, in Lupata, on the Zambezi River will produce around 600 megawatts and require investment of US$1.2 billion. (Mc/MZ)