Mozambique GDP could rise by 800 percent with LNG projects

Mozambique GDP could rise by 800 percent with LNG projects

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China’s drive to reduce carbon emission and embrace higher gas consumption could boost ability to secure market share.

Mozambique’s GDP could see a significant lift if the current LNG plants in the country can be upscaled to take advantage of the country’s gas reserve. If the planned LNG plants are upgraded to multi-train facilities, it is estimated that Mozambique will become one of the world’s leading gas exporters by 2022. The significant income set to be generated from the projects could prompt rapid growth in the country’s economy and GDP could rise by as much as 800 percent in the coming decade. Mozambique is estimated to be holding over 150 trillion cubic feet (Tcf) of gas reserves. Only Nigeria and Algeria have higher gas reserves in Africa.

Italian Oil giant, Eni is planning a floating liquid natural gas (FLNG) project offshore Mozambique with a final investment decision expected to be taken later in 2015. However, commercialisation amidst growing competition remains a major concern for potential investors. Australian LNG projects which are expected to come on-stream in 2020 and traditional sources such as Qatar could pose stiff competition. However, China’s drive to reduce carbon emission and embrace higher gas consumption could boost ability to secure market share.

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