Italy’s multinational oil company ENI, South Africa’s Sasol and Mozambique government controlled ENH gas and oil company have entered into a joint venture to set up a multi-million processing plant that will  turn natural gas into liquid fuel.

Mozambique has around 4.5 trillion cubic feet of proven natural gas reserves. The southern African country is also believed to have the fourth largest natural gas reserves in the world, after Russia, Iran and Qatar.

“Establishing a project of this kind will allow the country to produce liquid fuels from natural gas, such as diesel and petroleum, for example, and to reduce its dependence on imports,” ENH chairman Nelson Ocuane said in a statement.

Recently a London Stock Exchange listed company Wentworth Resources said drilling of oil has begun in oil and gas reserves in Northern Mozambique’s Cabo Delgado province.

There are large mineral deposits, in Mozambique but exploration has been constrained by the civil war (1977–1992) and poor infrastructure.

Mining sector in Mozambique contributes less than 5 percent of the nation’s gross domestic product (GDP). Other minerals currently being mined in Mozambique include marble, bentonite, gold, bauxite, granite, titanium and gemstones.

By George Mpofu