Shell to continue targeting Mozambique’s natural gas reserves

Royal Dutch Shell has said that it would continue ahead with plans to enter Mozambique despite recently losing out on a deal that would have given the oil major access to the East African country's huge gas reserves

According to Shell exploration chief Andy Brown, countries such as Mozambique in East Africa could potentially challenge Qatar and Australia for key gas export markets in Asia.

"East Africa is going to be a big province for LNG. We think they still need a company that can develop LNG and the associated shipping and marketing," Brown remarked. "So we're still interested in Mozambique."

Mozambique could potentially hold as much as 250 tcfg, national oil company Empresa Nacional de Hidrocarbonetos estimated earlier this month.

Other countries in East Africa have also showed signs that they could soon move to the forefront of the world’s energy production industry following recent discoveries off the coasts of Tanzania and Kenya, said Brown.

Shell has previously attempted to enter Mozambique gas reserves market, but lost out to Thailand's PTT Exploration and Production PCL in its bid to take over Cove Energy PLC, which held major interests in offshore Mozambique.