Growing demand for LNG gas pumps up potential for Moz

Gas holds
significant
potential to
transform the
Mozambican economy
despite a lack of progress
over the past year.
Plans for a multi-billion
dollar liquefied natural gas
(LNG) production plant
are still on the cards, says
Roelof van Tonder, a project
analyst with Africa House.
“There has been a lull in
developments on the ground
in Pemba and Palma –
mostly due to the drop in
oil and gas prices – but we
are seeing a lot of activity
in the boardrooms again
as the exploration projects
are being discussed and
put together,” he told FTW.
“This is because of the slight
recovery in the gas price. It
is all still in the very early
stages and a
lot still has
to happen
before we
start seeing
oil being
extracted
here.”
He said
with the
growing
demand for
LNG gas, the
Mozambican
gas project
held very real
potential.
“The country is however
going to have to get its
house in order as these
projects in Mozambique are
part of a number of LNG
projects around the world –
all competing for financial
investment
decisions at
present.”
He said
competing
countries
included
neighbouring
Tanzania
as well as
projects in
the Middle
East and
Australia.
“There
are only
a handful of companies
that have the required
balance sheet to make
the investment needed to
develop these gas reserves
– and Mozambique is going
to have to convince them
that it is a worthwhile
investment,” he said.
“One cannot rule out
the possibility that these
companies will decide to
rather expand an existing
gas project in Qatar for
example than build a new
plant from scratch.”
He said the unsecured
debt scandal that rocked
Mozambique last year had
not helped the situation
much.
“The gas outlook in
Mozambique is very exciting
but it is playing in a very
competitive market and so
they are going to have to
pull out the stops to make it
a reality.”
INSERT
The gas outlook
in Mozambique is
very exciting but it
is playing in a very
competitive market.
– Roelof van Tonder