Browsing: LNG

African economies thrive on an abundance of natural resources. However, the financial resources needed to exploit these resources remain a major constraint in Africa. Foreign direct investments are playing a critical role in filling the capital gap in Africa as most governments run on budget deficits. 

Mozambique, a new investment hub, is booming with capital inflows in its energy sector. With its abundant natural gas resources, the country has positioned itself as a dominant energy investment hub in Southern Africa.

The Prospects

Massive natural gas reserves

Mozambique has a lot of proven natural gas reserves. It ranks 14th in the world in terms of its reserves. However, production for this energy resource is still very low as well as local consumption. This is a result of poor infrastructure development to extract the resource and also proving that the sector is still in its infancy stages. There is …

Oil and gas projects are very complex due to a variety of challenges that need to be overcome. Risk management and financial burden are some of the hottest issues currently on these projects.

Now imagine you add Covid-19 and insurgent movements near the project area.

“The French oil and gas company Total is considering setting up a logistical base for its Mozambican operations, not only in part of Mozambique, but on the French Indian Ocean possession of Mayotte, according to a report (…)” as per the digital news portal Club of Mozambique.

It shouldn’t come as a surprise at all.

Being part of the French territory, Mayotte offers the best option for Total as a preferential hub for their project in Mozambique. France operates a military base in Mayotte, in the form of a detachment of its Foreign Legion, making the island a super safe place.

Mayotte is very well …

Mozambique is a country blessed with vast natural resources and abundant fertile lands – some of the key elements to ignite economic growth and social development that promises to change the good faith of the country.

Nevertheless, and despite the massive approved foreign investment related to natural gas rivalling its GDP, Mozambique will face strong challenges in order to secure a better future.

FurtherAfrica spoke to H.E. Adriano Maleiane, Mozambique’s Minister of Economy and Finance to better understand how the country intends to tackle these challenges using long-term strategies to ensure economic sustainability and a better future for its people.

Mr. Maleiane is no stranger to challenges, having served as Governor of Mozambique’s central bank for some 15 years and later overlooking the founding of the country’s national investment and development bank, an institution he served for nearly 5 years as chairman before he was appointed Minister of Economy and …

As the Mozambique LNG plant nears US$15B finance – making it the biggest private investment in Africa – two main points of view arise, diametrically opposed:

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• a more cautious short-term assessment identifies the current oversupply of natural gas worldwide, and a steep drop in price; in Asia, for instance, prices dipped so much that importers in China have released themselves from contracts claiming “force majeure”, a clause often invoked during natural disasters or war. Prices in Asia have fallen below US$3 per million British thermal units, whereas in mid-January it was comfortably above US$5/mmbtu.
• long-term growth prospects for the second half of this decade are phenomenally promising, with Royal Dutch Shell stating that demand has already been rising (by 12.5% only last year) and it forecasts that this demand will double by 2040, reaching 700 million tonnes. The fact that