Good afternoon. Yesterday saw the inauguration of a gas processing plant that should, if things go according to plan, replace three-quarters of Mozambique’s imports of liquefied petroleum gas (LPG), also known as cooking gas. In bottled form, the gas is mainly used for cooking and domestic heating, as well as some industrial processes. The plant in the town of Temane in Inhambane province, has been built by South African petrochemicals firm Sasol, but the gas will be sold by Mozambican state-owned oil and gas company ENH, which will use part of the proceeds to repay Sasol’s investment. As well as LPG, the plant will also supply “methane-rich gas” to the nearby Temane gas-fired power plant, and produce light oil for export which can be turned into fuels.
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For the first time in its history, Mozambique is able to produce gas in significant amounts for domestic consumption. Up to now, domestic gas use has been limited to a very small amount in the piped gas network in the city and province of Maputo. The government will be pleased at this, since this is a step forward in its strategy to exploit Mozambique’s gas for domestic use and create jobs along the way, instead of just exporting it.
