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Page last updated at 09:21 GMT, Thursday, 10 July 2008 10:21 UK

Natural gas 'to power Mozambique'

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Mozambique says it aims to phase in natural gas-powered vehicles as part of a push to exploit its gas reserves and tackle rising fuel prices.

"Gas presents huge opportunities. We need to try to maximize the potential," Transport Minister Paulo Zucula said.

Mozambique is rich in natural gas with reserves estimated at 3.6 trillion cubic feet in Inhambane Province.

The government has already imported several natural gas-powered buses from China on an experimental basis.

It has also signed a partnership with Italy to gain expertise, training and financing for gas projects.

The programme is part of Mozambique's efforts to tackle the impact of rising fuel and food prices.

The country's gas is currently sent to South Africa for processing, and the BBC's Jose Tembe in the capital, Maputo, says Mozambique needs to build its own processing plants to avoid relying on South Africa to bring the price down.

Mr Zucula told the BBC's Network Africa programme that Mozambique was looking for other investment partners.

"You need to have know-how, you need to have expertise, you need to have proper management and you need have proper maintenance structure in place and proper partnership between us and the private sector," he said.




SEE ALSO
Country profile: Mozambique
18 Jun 08 |  Country profiles

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