Mozambique positions self as global oil, gas hub

Oil and Gas Mozambique

Oil and Gas Mozambique

from ARIMANDO DOMINGOS in Maputo, Mozambique
Mozambique Bureau
MAPUTO, (CAJ News) FOLLOWING a second final investment decision (FID) in as many years, Mozambique has officially positioned itself as a key player in the global gas and liquefied natural gas (LNG) market for years to come.

The latest FID on the US$20 billion Mozambique LNG project makes it the largest sanction ever in sub-Saharan Africa oil and gas.

The development has been hailed as a “game-changer” for the Southern African nation of some 31 million people.

President Filipe Nyusi described it as one of the most important and transformational projects in the country’s history.

According to Wood Mackenzie, the global natural resources with quality data, analysis and advisory firm, from the early 2030s state revenue from Mozambique LNG alone will reach $3 billion per annum, single-handedly doubling the current revenue as calculated by the International Monetary Fund (IMF) and World Bank.

There are other mega LNG projects on the drawing board.

ExxonMobil’s Rovuma LNG project, which envisages a 15 million tpa two-train facility taking gas from its offshore area 4 block, is also lined up to take FID.

Italy’s ENI is already moving ahead with its 3.4 million tpa floating LNG facility, which will draw on 5 TCF of gas in waters more than 2,000 metres deep with first gas due in mid-2022.

“With strong LNG demand growth out of Asia, now is Mozambique’s time,” said Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, as news broke of the Anadarko FID.

With FIDs signed, the projects are now moving from the planning into the implementation phase.

Earlier in October, Mozambique Rovuma Venture (MRV) Area 4 operator moved ahead with the midstream and upstream project activities of over $500 million as initial investments.

These investments include activities such as the construction of the pioneer camp, the development of resettlement activities, the construction of the airstrip and access roads, as well as the start of detailed LNG facility engineering project.

Preparations are at an advances stage for the sixth Mozambique Gas Summit and Exhibition set for November 13-14 in the capital Maputo.

This edition is taking place at a time of exciting change including; the construction of FLNG, the progress in drilling activities in Cabo Delgado and Angoche, and the infrastructure development in Pemba Logistics Base.

– CAJ News

Short URL: http://cajnewsafrica.com/?p=31934

Posted by on Oct 16 2019. Filed under Africa & World, Energy, Featured, Finance, Finance & Banking, Investing, Investing, News, Oil & Gas, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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