The Japan Times - Mozambique looks to revive gas deals stalled by unrest

EUR -
AED 4.095707
AFN 71.375524
ALL 90.629125
AMD 401.864619
ANG 1.996035
AOA 1022.672924
ARS 1723.922219
AUD 1.618655
AWG 2.010215
AZN 1.895337
BAM 1.951988
BBD 2.245914
BDT 138.888795
BGN 1.949246
BHD 0.421306
BIF 3336.609061
BMD 1.115237
BND 1.429006
BOB 13.37648
BRL 6.134826
BSD 1.115123
BTN 104.674643
BWP 15.362036
BYN 3.339603
BYR 21858.651068
BZD 2.242801
CAD 1.572284
CDF 2581.774682
CHF 0.91503
CLF 0.027739
CLP 1091.805975
CNY 7.459268
CNH 7.438833
COP 3615.208992
CRC 505.721557
CUC 1.115237
CUP 26.764537
CVE 110.050107
CZK 24.332021
DJF 198.585581
DKK 7.475279
DOP 67.762239
DZD 152.073356
EGP 60.124507
ERN 16.728559
ETB 183.029391
FJD 2.526681
FKP 0.82712
GBP 0.834326
GEL 2.90513
GGP 0.82712
GHS 13.030141
GIP 0.82712
GMD 83.078765
GNF 9876.713947
GTQ 8.521361
GYD 233.783976
HKD 8.743577
HNL 29.972489
HRK 7.549052
HTG 146.154436
HUF 363.147469
IDR 20196.89173
ILS 3.549723
IMP 0.82712
INR 104.839499
IQD 1690.61247
IRR 2109307.411394
ISK 136.839321
JEP 0.82712
JMD 176.974426
JOD 0.790714
JPY 176.486031
KES 144.880684
KGS 97.525046
KHR 4543.433679
KMF 491.819516
KPW 1003.713526
KRW 1518.808077
KWD 0.346794
KYD 0.929448
KZT 499.850844
LAK 25086.451852
LBP 99861.479711
LKR 370.819259
LRD 189.582556
LSL 18.44129
LTL 3.293006
LVL 0.674596
LYD 7.136066
MAD 10.900218
MDL 19.933417
MGA 5067.286962
MKD 61.5824
MMK 2341.945843
MNT 4017.053808
MOP 9.002227
MRU 45.02009
MUR 52.449594
MVR 17.236008
MWK 1933.754044
MXN 20.794871
MYR 4.529091
MZN 71.274602
NAD 18.442528
NGN 1502.804634
NIO 41.039862
NOK 10.525626
NPR 167.47923
NZD 2.009351
OMR 0.428801
PAB 1.115197
PEN 3.841399
PGK 5.082031
PHP 70.381556
PKR 308.402558
PLN 4.394961
PYG 6969.547044
QAR 4.075748
RON 5.341543
RSD 117.528191
RUB 91.34446
RWF 1645.99659
SAR 4.187376
SBD 8.979576
SCR 15.328421
SDG 670.814858
SEK 11.021667
SGD 1.429924
SHP 0.83146
SLE 25.550526
SLL 23385.973454
SOS 637.298419
SRD 41.914518
STD 23083.160442
STN 24.452253
SVC 9.756948
SYP 14500.315015
SZL 18.43624
THB 37.422868
TJS 10.287089
TMT 3.914483
TND 3.336784
TOP 2.685223
TRY 55.937537
TTD 7.562233
TWD 36.572088
TZS 2947.016612
UAH 50.516904
UGX 4561.114057
USD 1.115237
UYU 44.862398
UZS 13306.017617
VES 996.76453
VND 28530.558211
VUV 133.285758
WST 3.098703
XAF 655.957
XAG 0.021556
XAU 0.000275660932
XCD 3.013984
XCG 2.009631
XDR 0.788531
XOF 655.957
XPF 119.331742
YER 263.391144
ZAR 18.42628
ZMK 10038.473066
ZMW 22.660174
ZWL 359.105955
SSP 6407.257042
MXV 2.339505
  • RYCEF

    0.1000

    19.81

    +0.5%

  • VOD

    -0.2500

    16.33

    -1.53%

  • CMSC

    -0.2800

    20.12

    -1.39%

  • RBGPF

    -2.0000

    65

    -3.08%

  • RIO

    -0.2500

    94.16

    -0.27%

  • BTI

    -1.2000

    54.85

    -2.19%

  • NGG

    -0.3000

    74.94

    -0.4%

  • GSK

    -0.3500

    49.35

    -0.71%

  • BCE

    -0.4200

    20.14

    -2.09%

  • CMSD

    -0.3400

    19.93

    -1.71%

  • BP

    -0.9100

    43.52

    -2.09%

  • RELX

    0.1700

    33.24

    +0.51%

  • BCC

    -0.6200

    75.97

    -0.82%

  • AZN

    -1.9400

    164.21

    -1.18%

  • JRI

    0.0000

    10.77

    0%

Mozambique looks to revive gas deals stalled by unrest
Mozambique looks to revive gas deals stalled by unrest

Mozambique looks to revive gas deals stalled by unrest

Global energy giants were quick to halt their Mozambican gas projects when jihadist violence erupted on their doorsteps. After months of calm, reviving those multi-billion-dollar projects is a much slower job.

Text size:

TotalEnergies CEO Patrick Pouyanne visited Maputo on Monday, saying he was optimistic about the $20-billion project.

"A lot of progress has been done, let me be clear," Pouyanne said, but added more work was needed to ensure lasting peace.

"Security is not only a matter of armed forces," he said. "It's also a question to work together with the population."

Vast natural gas deposits were discovered in the northern province of Cabo Delgado in 2010, the largest ever found south of the Sahara. Once tapped, Mozambique could become one of the world's 10 biggest exporters.

Since then, the Muslim-majority province has attracted three mega-projects: TotalEnergies' Mozambique LNG; ExxonMobile's Rovuma LNG; and ENI's Coral-Sul FLNG.

But in late 2017, armed insurgents began launching raids in the region, located near the Tanzanian border. Jihadists committed a series of beheadings and torched entire villages, claiming allegiance to the Islamic State.

Since then, 3,500 people have been killed, and 820,000 have fled their homes.

- Safety offshore -

Last March, insurgents made a surprise attack on the coastal town of Palma, the gas-hub near the TotalEnergies project, which the company promptly suspended.

"TotalEnergies should return this year, if it's going to meet its 2026 production goal," said Borges Nhamirre, a Maputo-based researcher for the Institute of Security Studies.

Of the three projects, only ENI's is on track. The Italian company's LNG facility is entirely offshore. ENI told AFP that it's set to begin production in the second half of 2022.

Coral Sul, the first floating LNG facility deployed in deep waters off Africa, arrived in Mozambique in early January. Once operational, it can produce 3.4 million tonnes of LNG a year.

With its 6.2-billion-euro investment, ENI said simply: "We continue to monitor security developments in the Cabo Delgado region and work closely with the government on this matter."

Experts say the offshore facility poses fewer security risks. Nhamirre pointed out that "in four years of violence, there hasn't been a single attack at sea, except for a few raids on fishermen near the coast."

The ExxonMobil project is at a standstill. Once expected to produce 15.2 million tonnes of LNG a year, the company doesn't seem ready to move ahead until the security improves.

- Future windfall -

"Maputo is determined to have this project," said Alexandre Raymakers, from the risk consultancy Verisk Maplecroft. "They need the revenue. We're talling about 35-60 billion dollars".

Mozambique's entire GDP is only $13 billion.

For the last six months, Mozambique's military has relied on 3,000 foreign troops sent by Rwanda and the Southern African Development Community (SADC) regional bloc.

The mission is officially open-ended, but Raymakers said "it's unlikely to last longer than 12 months due to SADC's limited ability to fund the mission."

"It's not about the number of troops they have on the ground," he said. "They have limited air cover, few helicopters."

And the insurgents have already adapated to the foreign forces, retreating to neighbouring Niassa province, which is now the rear base for their guerrilla attacks.

In January, the non-profit Acled documented about 30 attacks.

Mozambican President Filipe Nyusi claims progress in his anti-insurgent campaign.

But observers say the problem is more than military.

Cabo Delgado is about 2,000 kilometres (1,200 miles) north of Maputo, and is one of the poorest parts of a very poor country.

The lack of investment in infrastructure or opportunities for the youth make it easy for insurgents to find new followers.

Y.Kimura--JT