Mozambique: country of the future
Mozambique is an underdeveloped nation which will disrupt the global LNG market. The astonishing series of discoveries of natural gas offshore in the Rovuma Basin promise to establish Mozambique as the world’s fourth or fifth largest LNG producer after the US, Qatar and Australia – roughly on a par with Russia. Recoverable gas resources identified so far are estimated at 180 trillion cubic feet. These discoveries alone have the potential to shake up the markets particularly in India and the Far East, including China.
Final Investment Decisions (FIDs) are expected to total a staggering USD 128 billion by 2025. By 2024 4 onshore LNG trains should be operational with one floating LNG ship. A further 4 onshore trains could be operational by 2029/30. According to the Standard Bank from 2019 the Afungi site, in northern Cabo Delgado Province, with USD 55bn in FIDs will become the world’s most expensive real estate and will be a building site for the next decade.
Mozambique’s GDP is expected to increase in real terms at the rate of 8-10% p.a. over the next 30 years. By 2030 this impoverished nation will be transformed into one of the world’s premier petro-states generating enormous opportunities for investors in infrastructure projects such as power plants, roads, bridges, water facilities, housing, telecommunications, pipelines, port terminals, shipping, consumer goods, agriculture, support services, transport, hospitals and financial services.
The present world-class gas discoveries in the Rovuma Basin are likely to be followed by others along the East African seaboard. In the words of Anadarko spokesman, John Christiansen: “When you look at Africa over the centuries and the struggles which have come about because of exploitation of resources, this is an opportunity to do some things and to do them right that will help to transform those countries into something that serves its people well.”