Anglo-Dutch supermajor Shell and officials in Mozambique have signed a preliminary deal to study a possible gas-to-liquids facility in the country.
The agreement detailed plans to kick off a feasibility study for the GTL plant and discuss joint bidding for exploration acreage between Shell and Mozambique's Empresa Nacional de Hidrocarburos (ENH).
A memorandum of understanding was signed on Wednesday by ENH chairman Nelson Ocuane and Shell vice president for new business development Edward Daniels as mineral resources minister Esperanca Bias looked on, Shell said in a statement.
"We look forward to working with ENH to jointly study opportunities to further develop and diversify the country’s domestic gas industry," Daniels said.
Shell is known for its GTL background, having built the one of the world's first GTL facilities in Bintulu in 1993.
"In 2011, Shell and joint venture partner Qatar Petroleum started production at the world’s largest GTL plant, Pearl GTL, in Qatar," the company said.