Continental Focus, International Reach

Mozambique and Shell Enter MoU for Gas Allocation

Friday, June 23, 2017

Mozambique and Shell signed a MoU for the allocation of natural gas from the discoveries made offshore the country in the Rovuma Basin for domestic use. The MoU was signed by the Mozambican Mineral Resources and Energy Minister Leticia Klemens and Shell VP Clare Harris following a public tender for production of gas for domestic use.

Among the three winning bids was one from Shell-Mocambique, which requested between 310 and 330 Mmcf/d in order to produce 38,000 barrels of liquid fuels and 50 to 80 MW of electricity.

Klemens said, “a key aim of the government’s strategy for the sector is to ensure that the country’s development needs can be met through using natural gas in Mozambican industries.” The official called for integrated planning between the LNG projects in the Rovuma Basin, and the projects, such as Shell’s, to use the gas for domestic purposes.

Harris said the memorandum was an important step towards developing the project, and thanked the government for its continued support.


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