South Africa wants deal with Mozambique in oil and gas

Login

Register

http://www.clubofmozambique.com/

South Africa wants deal with Mozambique in oil and gas

3:43 CAT | 08 Jun 2018

South Africa’s energy minister Jeff Radebe has lined up a visit Mozambique to discuss with local authorities his country’s intention in building a Rovuma gas pipeline to Maputo from the far north to the south of the country, whose viability depends on the South African market, APA can report on Friday. ”I intend to visit Mozambique very soon to discuss with our neighbour the possibilities of an approach to the development of natural resources in our respective countries, as well as to ensure closer coordination and relations with all neighbouring countries,” said the South African official a in a media statement seen by APA on Friday.

In the document, Radebe said he wants to discuss with the Mozambican government the Gas Master Plan in order to have arguments to persuade his colleagues in the South African government about the need for the country to get involved in the project.

“Southern Africa has large gas reserves in Tanzania, Mozambique, Zimbabwe, Botswana and South Africa, and South Africa has the potential for shale gas,” Radebe said adding that that the energy and water ministers of Southern Africa will meet at a summit to discuss the development of the area.

The South African minister intends to submit to President Cyril Ramaphosa’s government the Gas Master Plan drawn up by the Mozambican government, and which includes a pipeline between north and south of Mozambique.
He contends that if South Africa does not buy Rovuma gas through the pipeline, there is the possibility of using the sea route through ships leaving the Rovuma basin.

Mozambique has some 85 trillion cubic feet of gas reserves enough to supply Germany, Britain, France and Italy for nearly two decades.

But analysts say it will likely take at least five years after final investment decisions before gas production begins.

Rovuma gas may be important for the supply of three regasification terminals that South Africa plans to build.

Radebe urged South African investors to get involved in building infrastructure projects and producing Liquefied Natural Gas. He argued that South Africa must become a global producer of shale gas.

Radebe and Cyril Rapaphosa have shown more preference for natural gas for energy production, cooling off the greater enthusiasm that President Zuma’s former executive had fed toward nuclear power.

Source: APA