“Mozambique must gear up to absorb natural gas investments” – CTA

Author: Impala News / Lusa
Date: 2017-02-01

On Tuesday 31 January, the CTA said that the country must get ready to absorb investment in gas production in order to take advantage of the business opportunities for local business it represents.

Speaking in Maputo during a conference on gas infrastructure projects, CTA Deputy Chairman Agostinho Vuma stressed that small and medium-sized Mozambican companies must rise to the challenge of seizing the business opportunities that will be generated by the gas industry.

“The findings made so far and publicised by the authorities indicate that Mozambique will be one of the largest producers of this resource in the world, with an estimated volume of 100-trillion cubic feet of natural gas in the Rovuma Basin, and estimated investment in infrastructure of around US$25-billion”, Vuma said.

The amount of investment in natural gas production, the CTA deputy chairman added, would represent almost twice Mozambique’s current GDP.

“Small and medium-sized Mozambican enterprises are ready to structure themselves in order to respond to the procurement requirements and regulations of large companies, specifically with regard to best practices”, Vuma said.

Permanent Secretary of the Ministry of Mineral Resources and Energy, Alfredo Nampete, said that Mozambican authorities were committed to creating conditions that allowed natural gas to be a source of development for the Mozambican private sector and of prosperity for the country in general.

“The government will do everything in its power to ensure that natural gas contributes to the industrialisation of the country and the growth of the private sector, and is a source of prosperity for the general population”, said Nampete.

In this regard, he said, the executive had already negotiated with gas production companies to allocate a portion of the resource to the domestic market, necessitating the building of supply infrastructure.

A consortium led by Italy’s ENI, which includes Portugal’s Galp, announced investments worth more than €8-billion in the construction of a natural gas production plant in the northern province of Cabo Delgado at the end of last year.

The consortium led by the US-based Anadarko may also be close to announcing its final investment decision for Area-1 in Cabo Delgado, where it holds a natural gas concession.