The construction of natural gas manufacturing infrastructure and electric power generation in Palma district, Cabo Delgado, could create between 8,000 and 12,000 jobs over the next five years, Mozambique’s Shell representative Alex Battaglia has told representatives of the Cabo Delgado provincial government.
Anglo-Dutch multinational Shell intends to invest several billion US dollars in Palma in the manufacture of natural gas for domestic use, along with other fuels and electricity, and the implementation phase of the various projects alone will generate 800 permanent jobs, Alex Battaglia told journalists.
Battaglia said that his firm was still is in negotiations with the Mozambican government, and that it was therefore premature to specify the exact value of the investments, adding that information about the amounts involved was sensitive, and it would be inadvisable to share it with the press at this point.
Battaglia explained that the meeting served to present Shell’s plans to the provincial government, as had been done with the central Executive. “We were sharing our ideas with new helmsman of Cabo Delgado, Julio Parruque, to put the project in context”, he said.
Shell is currently negotiating with the Ministry of Mineral Resources and Energy on fiscal matters obtaining during the production phase and delivery conditions governing the final products.
The company intends to build in Palma a high-quality domestic gas production facility and electricity transmission infrastructure expected to generate 80 Megawatts for Cabo Delgado province.
One of the items being negotiated with the government is the location in Palma to be granted for the implantation of the project, which must have access to the sea. The Provincial Director of Mineral Resources and Energy, Ramiro Nguiraze, noted that Shell’s project was part of the government’s Gas Master Plan, and that Shell had been selected via international competition with the aim of guaranteeing domestic gas supply.
He justified the meeting taking place behind closed doors stating that negotiations were still ongoing and that, although the company has been selected, there were still issues to settle. “This was just the first meeting between the company and the provincial government. Rest assured that public statements will be made. There’s is a lot still to be done,” he concluded.