Rovuma could propel Mozambique to top LNG producer globally – Standard Bank

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Rovuma could propel Mozambique to top LNG producer globally – Standard Bank

6:40 CAT | 24 Mar 2019

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.

By Marleny Arnoldi

Source: Engineering News