Mozambique Oil & Gas: ENH says discussing with Anadarko to “accelerate the domestic gas supply”

According to @Verdade reports, faced with Anadarko’s position whether it could only provide domestic gas for Shell’s GTL project in 2030, the CEO of the National Hydrocarbons Company’s (ENH) Omar Mitha explained that it is “seeing with Anadarko how to accelerate the gas supply process for Shell, @Verdade reports.

The vice president of Anadarko Petroleum Corporation in Mozambique, Steve Wilson, stated that the availability of additional natural gas to the Mozambican market should happen only “5 years after the Final Investment Decision and when we begin to produce after 2 years of sustainable production , then we can then certify additional reserves and then negotiate the sale of gas to other projects such as Shell’s GTL. ”

Speaking at the same panel of the Financial Times Conference held in Maputo on 8 October, the director of the Afungi GTL project, Moon Hussain, replied that the US multinational company leading the Area 1 consortium is maintaining the diversification projects of the natural gas industry in Mozambique “held hostage by its creditors”.

“If we do not get gas for our fuels by 2021 or before the benefits we will have to push back to 2030,” concluded Moon Hussain.

@Verdade also questioned Omar Mithá, how will this situation be resolved considering that Mozambican law mandates that 5% of the resources produced have to be allocated to the domestic market.

“The Area 1 Development Plan was approved by the Council of Ministers and there is a clear mandate for ENH to discuss with the operator to see how to accelerate the gas supply process for Shell, which will happen in the second phase. This is happening in a proper forum where Shell is, ENH also has a consultant”, Mitha explained.

However Mithá acknowledged that: “if you do not have an export project, which is an anchor project, you will not have the domestic gas project, so there is a series of prioritization here.”

Shell Mozambique BV won a public tender promoted by the Government to implement in the province of Cabo Delgado a natural gas processing industry that Anadarko will produce in liquid fuels such as gas oil, naphtha and kerosene but to materialize this, it needs 310 to 330 million cubic feet a day of hydrocarbons.

During the first phase of its project, Anadarko proposed to allocate only 100 million cubic feet of natural gas to the Mozambican market.source: @Verdade