Mozambique is
set to become
the Southern
African
Development
Community’s (SADC)
first liquefied natural gas
(LNG) exporter thanks
to Italian company
ENI’s 3.4 million tonnes
per annum (MTPA)
f loating LNG venture.
The FLNG, situated
in the country’s gasrich
Rovuma Basin,
is expected to become
operational by 2020.
This is according
to Luke Havemann,
senior associate at legal
firm Bowmans’ Cape
Town office, in the oil and
gas sector group. He was
addressing delegates at a recent
Bowmans seminar focusing
on ports and harbours in
Johannesburg.
He pointed out that once
exports were
eventually
brought online
in Mozambique,
Bowmans
expected a major
acceleration
of economic
activity, yielding
some of the
highest rates of
real GDP growth
in sub-Saharan
Africa.
According to Havemann, gas
discoveries in the country could
hold potential value of as much
as 30 to 40 times Mozambique’s
current gross domestic
product. “When Mozambique’s
gas comes online, in 2019 or
shortly afterwards, revenues
from hydrocarbons – found in
natural gas – have the potential
to enable the country to pay
its way out of
poverty.”
Aside from
the expected
lucrative
ENI project,
there have
been prolific
discoveries in the
offshore Rovuma
basin which have
raised proven
gas reserves
from 4.5 trillion
cubic feet (TCF) to 100 TCF.
“This places Mozambique
as the third-largest holder of
proven gas reserves in Africa,
after Nigeria and Algeria,” said
Havemann.
INSERT & CAPTION
Gas discoveries could
hold potential value of as
much as 30 to 40 times
Mozambique’s current
gross domestic product.
– Luke Havemann
Mozambique set to become first LNG exporter
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