The Mozambican Ministry of Mineral Resources and Energy and Norwegian company Yara International on Monday in Maputo signed a memorandum of understanding for the production of fertilizers from the natural gas extracted in the Rovuma basin in the northern province of Cabo Delgado, according to an official statement.
This agreement follows the results of an international public tender to award a portion of the natural gas to be extracted in the future, with Yara International being one of the three winning companies, together with Shell and GL Africa Energy.
The Norwegian company has requested the award of 80 million to 90 million cubic feet per day for annual production of 1.2-1.3 million tonnes of fertilizers (ammonia and urea) and 30 to 50 megawatts of electricity.
The ministerial statement recalls that the Government’s Five Year Plan outlines local production of fertilizers, fuels and energy from natural gas, aimed at reducing imports, increasing foreign currency reserves as well as productivity in agriculture and expanding the country’s power grid.
According to information released by the National Petroleum Institute, Shell Mozambique will produce diesel and between 50 and 80 megawatts of electricity and GL Africa Energy, a Kenyan company based in London, will produce 250 megawatts of electricity from natural gas.