HomeNewsSA and Mozambique discuss development of GTL plant

SA and Mozambique discuss development of GTL plant

PetroSA’s semi-
commercial GTL-plant
at Mossel Bay, in
South Africa
Maputo, Mozambique — 26 April 2012 – South African state-owned oil company PetroSA is in talks with the Mozambican authorities about the development of a gas-to-liquids (GTL) plant to feed growing demand for diesel in the country and region.

Reuters reports that confirming this development, PetroSA business development manager for GTL Gareth Shaw said his company was proposing construction of a 40,000 barrels-per-day plant at a cost of around US$4 billion. The plant could feed a growing need for fuels, and diesel in particular, in the southern African region.

Shaw said the plant could use PetroSA’s new low-temperature Fischer-Tropsch technology, which would boost the share of diesel produced in the plant to 70% from 40% seen in other types
of GTL technology.

“The industrial growth Mozambique is experiencing is driving diesel consumption in this area,” Shaw told a mining and energy conference here.

Mozambique is a net importer of fuel, with some 900,000t of fuel products brought into the country each year, the national fuels director has revealed.

Consortia led by U.S. oil and gas producer Anadarko Petroleum and Italy’s Eni have made huge gas discoveries in Mozambique’s Rovuma offshore basin. The country’s total recoverable resources are seen at more than 100 trillion cubic feet, industry officials and analysts have said.

While producers are first likely to build liquefied natural gas plants in Mozambique, and some have already announced plans to do so, Shaw said there was scope for a GTL plant after that.

Source: Reuters. For more information, click here.