Portugal’s Galp believes that Mozambique will lead world gas production

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Portugal’s Galp believes that Mozambique will lead world gas production

2:51 CAT | 12 Jun 2018

Galp's chief executive Carlos Gomes da Silva (in file CoM)

In an interview with the Financial Times (London), Galp’s chief executive Carlos Gomes da Silva said that “the next decade will be Mozambique’s decade” in the world market for natural gas.

Silva believes that Mozambique will satisfy burgeoning demand in the international gas market that cannot be satisfied by existing producers, but admitted it would be necessary to prevent the cost of producing gas from rising precipitately, as was the case with similar projects in Australia.

“We are working to optimize this and make sure we keep the project competitive,” he said. Galp holds 10 percent of the Coral Sul project in Cabo Delgado province, and forms part of the consortium led by Eni, which includes the Portuguese oil company Galp, alongside South Korea’s Korea Gas and the Mozambican company Empresa Nacional de Hidrocarbonetos (ENH), and is to invest a total of US$8 billion.

The consortium’s priority is to ensure low operating costs, rather than pursuing a timetable at any cost, and estimates that actual production of liquefied natural gas in Mozambique will start in 2022.

Source: Folha de Maputo