Mozambique natural reserves present opportunities to ‘gas up’ the economy

Recently, Mozambique’s ministry of resources and energy merged under one power house of economic activity.

This resulted into the boom factor in natural gas industry. With over USD 3.28 Billion worth investment into the industry last year, Mozambique is proving a plethora of potential opportunities for foreign investment, including investment for small business to be part of the peripheral process for local businesses.

According to the Oil & Gas Journal, Mozambique’s natural gas reserves extend to 100 trillion cubic feet (2014) from 4.5 trillion cubic feet in 2013. This makes the country sitting on the potential to become one of the biggest natural gas reserves in the continent – aligning itself with Nigeria and Algeria.

Currently, majority of Mozambique’s natural gas is exported to South Africa via the 535 mile Sasol Petroleum Gas Pipeline, and some goes to domestic consumption.

032415_1102_mozambiques1Although there comes an evident opportunity to the natural gas sector, certain challenges and questions lift the brow to ensure the success of Mozambique’s economy and its civilians. social and economic development issues surrounding regional gas sharing in the power sector investment, environmental sustainability and bankability of such power projects are issues that need to be discussed and addressed. This enables EnergyNet, an English based events company to host the 4th annual Powering Africa Mozambique, in the capital city Maputo in the first week of May this year.

With the likes of Eskom, Sasol, European Investment Bank, African Development Bank and Tractebel Engineering in attendance, the platform will address the ministry’s strategies for encouraging investment and natural resources to ensure the success of the booming gas economy.