FTSE Global Markets: Mozambique Moves to Build LNG Franchise
Mozambique liquefied natural gas, (LNG) stands to transform the country. Mozambique is looking to gas exports to raise the government's revenues and reduce a heavy dependency on donor aid which it has relied on since independence from Portugal in 1975. Developing the country’s reserves and scaling up a currently planned LNG facility to its potentially multi-train capacity, could establish Mozambique as one of the largest exporters of LNG, a commodity of increasing global prominence, says Simon Ashby-Rudd, global head, Oil & Gas at Standard Bank. What’s the outlook for the sector?
Some of the world's biggest offshore natural gas fields lie off Mozambique, which despite extensive coal and gas discoveries remains one of Africa’s least developed markets. Lacking capital to develop multi-billion dollar LNG export terminals, Mozambique has to attract foreign investment for financing. The government hopes to bring in a substantial $30bn in FDI most of which will focus on the natural gas sector to build capacity to produce 20m tonnes per year of liquefied natural gas (LNG), with first exports due to start in 2018/2019.
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