An independent macroeconomic study undertaken by Standard Bank has found that the first phase of Area 4 concession’s Rovuma liquefied natural gas (LNG) project, in Mozambique, has the potential to deliver 15.2-million tonnes of LNG a year.
The project is expected to attract between $27-billion and $32-billion in investment that will monetise 2.6-billion cubic feet a day of offshore LNG resources, adding between $15-billion and $18-billion a year to Mozambique’s gross domestic product.
The project will contribute to growing Mozambique into the fourth-largest LNG producer globally.
Mozambique will become a supplier of LNG to some of the world’s largest economies, such as China, which is deepening fuel-switching policies aimed at replacing coal with gas as an energy source, says Standard Bank.
The Area 4 concession will reach a final investment decision for the project’s first phase before the end of the year.
Standard Bank Southern Africa oil and gas head Paul Eardley-Taylor says Rovuma LNG will employ about 20 500 construction workers and 1 300 operational workers, while creating additional employment opportunities from various value chain and reinvestment activities associated with the support, supply and profits arising from the commercial operation of Rovuma LNG.