LNG contracts to support Mozambique’s GDP growth in 2016 – Finmin

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LNG contracts to support Mozambique’s GDP growth in 2016 – Finmin

2:53 CAT | 16 Feb 2016

Notícias / Adriano Maleiane, Minister of Finance and Economy.

The Minister of Economy and Finance of Mozambique, Adriano Maleiane, believes that the finalisation in the near future of oil Rovuma basin exploration contracts will support economic growth in 2016.

Without giving details, the minister announced that the parties have settled almost all the points discussed, with only minor details left to finalize.

Speaking at the end of a meeting between the government and state budget Programme Aid Partners, Maleiane said he considered energy projects, particularly gas, as crucial to maintaining the level of growth of gross domestic product (GDP) at seven percent for this year.

Some analysts have questioned the growth target in the light of the floods in central and northern regions and the severe drought in Mozambique’s south. The minister acknowledges that these factors will have an impact but says this will be offset by the energy sector.

“In relation to the Rovuma projects, we have completed negotiations with the partners concerned and think that if everything goes according to plan, we will see the first gas exports within the next four years,” Maleiane said.

In the last five years, Mozambique has discovered reserves of natural gas in the Rovuma basin estimated at about 170 trillion cubic feet. US company Anadarko and Italy’s ENI hold 15 and 10 percent of these blocks respectively.

This year is considered crucial for Mozambique’s entry into the list of the most important global energy sources.

Final decisions for investment in natural gas exploitation are expected, a fundamental step for the Rovuma basin plans. Operators have submitted development plans to the government with a total investment value of US$39.6 billion and ENH participation of US$5.69 billion.

If operations go ahead as planned, Mozambique could become the world’s second largest gas producer, leaping ahead of countries like Algeria, Nigeria, Angola and Tanzania.

Source: Notícias