Business
Mozambique to use gas revenues to industrialize and social development
Anadarko said it would be interested in selling gas into the domestic market after it matures to a point that gas prices are competitive, while Eni mentioned plans to build a power plant in Mozambique.
For now, local development plans are vague and depend on investors’ access to capital, future gas prices and development of domestic transportation and distribution infrastructure.
The plan analysed four coastal locations for the development of a gas hub: one in Palma, close to Tanzania’s border and near the discoveries made by Anadarko and Eni, and three others in Pemba, Nacala or Beira further south.
While the LNG plants are likely to be built at Palma, the state is keen to distribute the benefits of the gas riches to other parts of the country and build industrial hubs based on gas.
One major challenge will be transporting the gas from the far north over its 2,500 km (1,550 miles) coastline – Africa’s longest – to the capital Maputo in the far south.
Mozambique is now finalizing the master plan, which will feed into a more concrete document that will rank individual projects according to their feasibility and economic boost.
Each location and individual project will be evaluated based on its economic viability, contribution to jobs, other social development, state revenues and on environmental grounds, a senior government official said.
Mozambique plans to create a sovereign wealth fund or a national development bank to channel future gas revenues into industrial and social development.
