The Minister of Mineral Resources and Energy, Leticia Klemens, and the Vice-President of Shell, Clare Harris, signed a memorandum of understanding on Monday in Maputo allocating gas from the Rovuma Basin for domestic use in Mozambique.

The agreement follows on the results of the public tender for the Rovuma Basin domestic gas tender, published last January, which selected the Yara International Fertiliser Project, Shell’s Afungi GTL and Energy Project and the Electric Energy from GL Africa Energy.

As part of the government’s use of natural gas for the development of projects in the domestic market programme, Shell Mozambique BV will produce 38,000 barrels of liquid fuels (GTL diesel, nafta and kerosene) and 50 to 80 MW of electricity.

Klemens stressed that the government’s strategy for the sector aimed to ensure that resources were used, first and foremost, to meet Mozambique’s development needs.

Shell’s Clare Harris said she believed that the signing of the memorandum marked an important step towards developing the project more specifically in the energy sector and in the domestic gas industry.(Source: Rádio Moçambique)