Gas places Mozambique at the top of US investment destinations in Africa

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Gas places Mozambique at the top of US investment destinations in Africa

9:01 CAT | 26 Apr 2017

Lusa (File photo)

Mozambique will be at the top of the United States investment destinations in Africa thanks to new natural gas projects, US Ambassador to Mozambique Dean Pittman told Lusa yesterday.

“We are very pleased to be here as investors” through private companies and the bet on natural gas in Mozambique is expected to be among “the largest US investments in Africa,” Pittman said.

Anadarko is one of the consortiums that identified large quantities of natural gas in the Rovuma basin in northern Mozambique, while [US company] Exxon bought 25 percent of Eni East Africa, which leads a second consortium in the same area.

Final investment decisions for the start of exploration in Mozambique are not yet taken, but Pittman told Lusa that once they move forward, they could total 49 billion euros.

The United States of America hopes there will be “transparency” and “good practices” in business in the sector, he added.

Gas revenues would help boost “health and education” in the country, so it was important “to ensure that it is a transparent process and that it uses good practices that other countries already use,” he said.

Ambassador Pitman was speaking to journalists on the sidelines of a meeting for the exchange of experiences in the gas field in Africa, an initiative taking place yesterday and today [Wednesday] in Maputo, promoted by the US Department of Energy, other US entities and the Institute of Petroleum of Mozambique (INP).

The meeting, attended by representatives of several African countries, is seen as an example of actions aimed at implementing this transparency, so that the entire population benefits from the revenues from the exploitation of natural resources.

The promoters have launched a manual to “facilitate discussion” between African governments, the private sector and civil society on the development of the natural gas and liquefied natural gas sector.

“We are going to invest, we have several American companies that want to invest a lot of money, but the most important thing is that the country takes advantage of this resource to benefit the entire people,” Pittman said.

The diplomat believes that “investment in the industry is already creating confidence in the economy because of the interest of large multinational companies” and “this will give a signal to other small and medium-sized companies to start investing as well”.

“This trust is very important” and “the people of Mozambique will start to feel the impact of this investment” he concluded.

Source: Lusa