Mozambique (122)

Mozambique: Massive potential in natural gas

In this article we focus on the country of Mozambique, discussing the massive potential in natural gas boosted by recent discoveries.

Natural gas exploration activities

Mozambique is viewed to be one of the African countries that will be most able to boost its share of foreign direct investment inflows to the continent over the medium-to long-term. Apart from the large-scale expansion of coal production, natural gas exploration activities and plans to build LNG plants have helped to boost foreign investment.

Natural gas discoveries

Most recently, on 5 December 2012, Italian oil and gas giant Eni announced new discoveries of natural gas in Mozambique. The six tcf of gas at the company’s Mamba field brings total discoveries at the complex to 75 tcf. Eni will drill two further wells to determine the full potential of the Mamba field’s discoveries.

Mamba is Eni’s largest ever exploration discovery. Meanwhile, Anadarko has made natural gas discoveries of around 65 tcf in Mozambique according to our records, bringing the country’s total to 140 tcf. For comparison purposes, Nigeria (which holds the largest proven natural gas reserves in Africa) had 180.5 tcf of proven natural gas reserves at the end of 2012. Note however that Nigeria’s reserves are proven, while Mozambique’s number is just an estimate. Nevertheless, it indicates the country’s massive potential in the sector.

Notable gas projects

Some notable gas projects – current or planned – are listed below:

  • Eni expects to spend €3.1bn in Mozambique during 2012- 15. Eni has also stated that it plans to invest €50bn to develop its gas finds in Mozambique, quite possibly with the help of other partners.
  • Anadarko has stated that it plans to build a LNG plant in the country, with production expected to start in 2018. This process is expected to involve $14bn in investments.
  • South Africa’s Sasol continues to invest in the expansion of its natural gas production in the country.

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David Okwara

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