Mozambique moved a few steps closer to becoming a player on the fast-growing global market for liquefied natural gas (LNG), eight years after the first major deep-water discovery there.
The development of hydrocarbon resources is crucial for the Southern African country, which has struggled this year to service its debt. While the projects will require tens of billions of dollars in funding and take years to develop, they offer a way to stimulate growth in one of the world’s poorest countries.
Exxon Mobil and Eni said last month that they had started marketing the gas that would be produced by their Rovuma LNG project and expected to make a final decision on whether to proceed with the venture next year.
Anadarko Petroleum, which said in April it has already secured customers for its fuel, also expects to make its investment decision in the first half of 2019, Mitch Ingram, executive VP for international deep water and exploration, said at the recent World Gas Conference, in Washington.
Mozambique expects LNG production to begin from the nation’s first development by the end of 2022. Under the baseline scenario, total State revenues would amount to $49.4-billion over the lifetimes of the various projects, the government said in a presentation to creditors with whom it is trying to restructure its debt.