The National Hydrocarbons Company (ENH) has signed a memorandum of understanding with the Italian multinational Saipem, in Maputo, aiming at the monetization of domestic gas coming from the Mozambique LNG project, in Area 1, of the Rovuma Basin, in Cabo Delgado.

The document was signed by the Chairman of the Board of Directors (PCA) of ENH, Estêvão Pale, and the representative of Saipem, in the presence of Mozambique's Minister of Mineral Resources and Energy, Carlos Zacarias.

In the first phase ENH and Saipem will conduct a feasibility study to assess the financial, economic and environmental sustainability of the gas monetization project.

The results of the study, due in November of this year, will be submitted to the Ministry of Mineral Resources and Energy (MIREME).

"We hope that the study will bring results that respond to the Government's desire to see our gas being used for the development of national industry," said the Minister of Mineral Resources and Energy, reiterating the Government's openness to support whatever is necessary for the materialization of the recommended objective.

The other expected impacts for the country are the transfer of knowledge; development of local content, through the creation of jobs and business opportunities for local suppliers; support for government authorities in the implementation of projects with a regional dimension, and the growth of the national economy.

If its feasibility is approved, the project will be developed based on domestic gas to be made available by the Mozambique LNG venture, from Area 1, of the Rovuma Basin.

In all, the Mozambique LNG project will make 400 million standard cubic feet of natural gas per day available for the development of the country's industrialization projects.