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Moz gas project still on back burner

21 Jul 2022 - by Ed Richardson
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A resurgence in violent attacks by insurgents in northern Mozambique means that the gas projects in the region remain on the back burner.Companies which have geared up to handle the project cargo for the giant project have had to scale down since TotalEnergies halted work due to insurgency in the area in April 2021.The company remains active in Mozambique, however, and in January 2022 acquired BP’s retail network, wholesale fuel business and logistics assets.Fresh attacks in the north by terrorists said to be affiliated to the Islamic State in June threaten to further delay the project, according to a report in Business Insider Africa.In the meantime, Italian oil and gas company Eni has announced that gas has started f lowing into the offshore Coral Sul production facility.Italian foreign affairs minister Luigi Di Maio announced in March during an official visit to Mozambique that Eni, together with partners Exxon Mobil and the China National Petroleum Corporation (CNPC), would continue prospecting for gas in the Rovuma Basin in the second half of the year.There is also the prospect of major investment in renewable energy, which will create fresh demand for project cargo services.In June 2022, Electricidade de Moçambique (EDM), the Mozambican state-owned power producer, announced a US$40-million investment in new solar and wind projects across the country via the Renewable Energy Auction Program (PROLER).Plans include the construction of a 15MW solar plant in Cuamba, the Dondo solar plant in Sofala and the Lichinga solar plant in Niassa, as well as a wind project in the town of Namaacha.

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