Business
Mozambique to use gas revenues to industrialize and social development
(Reuters) – Mozambique plans to take advantage of massive gas reserves to develop domestic industries as well as export liquefied natural gas, boosting government revenue by US$6 – US$8 billion a year, the latest draft of its master plan showed.
Some 150 trillion cubic feet of gas have been found off its shores so far, and the government and companies scouting wells have estimated there may be potential to double that estimate.
Oil majors including Italy’s Eni and the U.S.’s Anadarko Petroleum are pushing for the development of Liquefied natural gas (LNG) plants first as the quickest way to pay off investments in gas production.
But while exports will be prioritized and production deals are expected to be signed next year, the government hopes other downstream developments will come soon after.
“We want more than just LNG. We have huge reserves and we want to see how we can use the gas in the local, regional and international market,” Minerals Minister Esperanca Bias said.
Mozambique hopes the gas will become a game-changer for a country where more than half live below the national poverty line.
A net importer of fuel, Mozambique hopes to use gas to manufacture liquid fuels. It also aims to produce cheap electricity to help supply a large number of its citizens who still have no access to power.
