South Africa must consider psychological, trade impact of Mozambique LNG projects
Mozambique is likely on the brink of an economic breakthrough, owing to significant volumes of gas becoming available in the region as the liquefied natural gas (LNG) export projects in northern Mozambique come on line, says Standard Bank oil and gas head for Southern Africa Paul Eardley-Taylor.
He urged South Africa to “consider the psychological . . . and trade impact” of the LNG projects on the relationship between the two countries.
This, he said during a panel discussion hosted by Webber Wentzel earlier this week, was of particular importance as the LNG projects were raking in up to $60-billion worth of investment and could potentially employ up to 15 000 people per project.
The massive finds in northern Mozambique, according to PwC’s latest Africa oil and gas review, had already resulted in LNG project developments worth a combined $54-billion and had the potential to turn South Africa’s impoverished neighbour into the world’s third-largest LNG exporter, Engineering News Online reported earlier this month.
Advisory firm Marques Advisory’s Paris Marques shared Eardley-Taylor’s sentiment and urged South Africa Incorporated (SA Inc) to “just think about the possibilities” that Mozambique’s LNG sector presents.
The psychological impact, in particular, he told delegates, would be seen in Mozambique “asking for some respect” and localisation, especially as the LNG projects had the potential to create “limitless possibilities” in not just infrastructure, but services and agriculture in the surrounding regions.
For SA Inc, however, Marques suggested that businesses consider what they were able to do for Mozambique and provide it with, while taking Mozambique’s competency levels into account, in order to partner with local partners and create long-term sustainable investment, which is something that South Africa could benefit from, considering Mozambique’s need for growth and its geographic proximity.
However, he urged delegates and potential investors to “do as much research as possible” about what Mozambique was doing and offering before making a final decision to invest in the country.
Law firm Linklaters global energy and infrastructure group partner Francisco Ferraz de Carvalho, meanwhile, in his closing presentation, said Mozambique’s LNG opportunities would also provide domestic gas opportunities, both direct and indirect, as well as provide an opportunity for South African investors.
While it may be challenging and potential investors were urged to be cautious, he added that Mozambique was worth considering as an investment destination, if the right partners and advisers were involved in the investment process.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation