Browsing: natural gas in africa

Cabo Delgado LNG in Mozambique

The gas project delays costing East Africa billions

Countries
  • Several gas finds in East Africa dating decades have suffered long delays from the time they were “found”.
  • Lengthy negotiations and insecurity have marred the projects, delaying a final investment decision on their development.
  • Mozambique is already fighting Islamic insurgents in its gas-rich northern province, Cabo Delgado.

Economies across East Africa are losing billions of dollars in revenue every year because of key gas project delays in approving and developing liquefied natural gas investments, an analysis by The Exchange Africa reveals.

Several gas discoveries in East Africa dating decades, which were expected to power the region's natural gas industry have suffered long delays from the time they were “found”. Lengthy negotiations, and insecurity have marred the projects, delaying a final investment decision (FID) on their development.

Mozambique's gas finds

Take Mozambique, a regional economy of $41 billion GDP, for example. Mozambique reported huge gas finds in the 2010s. Industry…

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Mozambique WeTracker

Mozambique insecurity shuts down LNG project

Countries

It is a sad day for Africa and Mozambique as Total SE the French energy company seal its $20 billion liquified natural gas (LNG) project in the security risk country rich in natural gas reserves, according to information from Total.

“Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation leads Total, as operator of Mozambique LNG project, to declare force majeure,” Total statement reads in part.

Mozambique as one of the few countries with natural gas reserves has been ravaged by frequent attacks executed by Islamic insurgents in Cabo Delgado province.

READ:Mozambique gas: Amid conflict, harmony gazes at Tanzania 

Various media sources, including Aljazeera, reported that the project has been stopped indefinitely due to an escalation of violence in the areas with LNG projects.

“The …

mozambique

Mozambique: An energy investment hub

Countries

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.

beach sea coast
Mozambique sunset

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 …