Mozambique’s downstream projects need cheaper gas

Mozambique will need to offer gas more cheaply than $2.64/MMBtu to make the country’s planned GTL and fertiliser projects economic Mozambique will need to offer gas more cheaply than $2.64/MMBtu to make the country’s planned GTL and fertiliser projects economic.
By Leigh Elston 26 July 2017 0 26931
An Anadarko drillship off the coast of Mozambique. (Anadarko)

Mozambique will need to drop the price of the gas it offers to downstream project developers if it wants to move forward with developing a domestic gas industry, two sources working on the projects have told Interfax Natural Gas Daily.

Mozambique’s domestic gas tender offered bidders up to 11.3 million cubic metres per day (MMcm/d) of gas, with the initial 2.8 MMcm/d priced at $2.64/MMBtu. The price for the remaining volumes has yet to be negotiated, but analysts assume it will be higher. 

Following six months...

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