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Thursday, July 3, 2014
Shell and Mozambique’s ENH signed a MoU that revolves around the monetization of the eastern African country’s significant natural gas reserves discovered offshore the country, specifically through the development of a GTL facility.
Under the MoU the partnership between ENH and Shell would start with a viability study to identify the potential for a GTL plant which will form the basis for the development of other areas, including the supply of associated gas and infrastructures, as well as joint negotiations to acquire hydrocarbon exploration rights.
Speaking immediately after signing the memorandum, ENH Chairman Nelson Ocuane said the agreement was part of ENH’s efforts to become a prominent and integrated hydrocarbon company, operating in Mozambique and in other countries.
Shell Executive VP for Downstream Development Edward Daniels said he hoped that Shell would work together with ENH to study opportunities for further development and diversification of the gas industry in Mozambique. “Shell brings experience of more than 50 years in developing gas projects using our global reach, our financial solidity and our advanced technological capacities,” he said.
The signing of the MoU was preceded by the signing of an agreement for a joint study to identify areas of high hydrocarbon potential in Mozambique. In future the two companies may acquire joint rights in the areas concerned.
Shell is not the only company interested in establishing a GTL facility in Mozambique, both PetroSA and Sasol out of South Africa have expressed interest in monetizing the country’s gas through GTL production.
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