Such a pipeline would run for 2,100 kilometres and its total cost is estimated at four billion dollars. If the viability study is favourable the construction of the pipeline could begin in mid-2015.
This commitment is contained in a press release issued to mark the signing of a memorandum of understanding between ENH, and the South African energy group, Gigajoule.
Huge discoveries of natural gas have been made in the Rovuma basin, off the Cabo Delgado coast, by the American and Italian companies, Anadarko and ENI. The discoveries pose logistical challenges concerning the use of the gas locally,
Thus pre-viability technical and market studies have been undertaken on the possibilities of natural gas consumption in Mozambique and the neighbouring countries. These studies looked at the domestic and industrial use of gas, and its potential for generating electricity.
The pre-study demonstrated that it would be technically and economically feasible to use the gas in the region, but only if a gas pipeline is built.
The study ruled out the use of Liquefied Natural Gas (LNG) in the region, on grounds of cost (though it seems that the gas will be transported to overseas markets, notably in Asia, in LNG form).
The gas transported by the future pipeline can be used to produce ammonia, fertilisers and cement.
On a small scale, the natural gas from the Pande and Temane fields in the southern province of Inhambane is already being used in motor vehicles to replace liquid fuels. The Inhambane gas is also being used as fuel in industries in the southern city of Matola and the surrounding area, notably by the Mozal aluminium smelter.
In March, ENH began to build a pipeline named the “Maputo ring” which will carry gas from Matola, through Maputo to the district of Marracuene, on the other side of the capital. The gas will be for domestic and industrial use. It could cut energy bills sharply, and reduce the use of wood fuel, which is putting heavy pressure on Mozambique’s forestry resources.
The Inhambane gas is also being used in two small scale power stations near the South African border, and more gas-fired power stations are planned.
Post published in: Africa News