Page 4 - AfrOil Week 33

AfrOil COMMENTARY AfrOil

(Image: Anadarko)

Security risks rising

for Mozambique LNG

Militants seize control of Mocimboa da Praia, the main port of entry for Mozambique LNG supplies

MOZAMBIQUE’S plans for developing off- that local companies can provide, such as trans-
shore natural gas resources recently took a step portation, construction and hospitality. This, in
WHAT: forward, with the signing of a $14.9bn loan deal turn, would allow the Mozambican private sec-
Unrest in northern between multiple banks and the Mozambique tor to grow and flourish, even as gas revenues
Mozambique has the LNG consortium. began filling the government’s coffers.
potential to affect the The credit will cover most of the $20bn that But there are obstacles on the path to success
Mozambique LNG project. the group expects to spend on upstream activ- – and one of them has grown more urgent dur-
ity at the offshore Area 1 and on the construc- ing the last week.
WHY: tion of a gas liquefaction plant and associated
Total and other investors infrastructure. Conflict considerations
in LNG projects are likely As such, it will put Mozambique LNG, led All of the LNG consortia mentioned above are
to press forward, but by France’s Total, on the road to beginning gas working in northern Mozambique, not far from
they may have to make extraction and LNG production on schedule the border with Tanzania. The area has been res-
new transportation and in 2024. By extension, it will also help convince tive for some time, owing to disputes between
security arrangements.
other investors and lenders that Mozambican the region and the national government.
LNG projects – not just ongoing projects such About three years ago, though, the unrest
WHAT NEXT: as Coral South LNG and Rovuma LNG, both began expanding to include attacks by Isla-
If the conflict drags on
or escalates, the target of which will rely on gas from the offshore mist groups, including Ahlu Sunnah Wa-Jamo
dates for LNG production Area 4, but also future initiatives – are worth (ASWJ), which has links to the Islamic State
may have to be pushed supporting. (Daesh).
back. Likewise, if additional gas projects go for- To date, more than 1,000 people have been
ward, they will drum up demand for services killed by the insurgents.

P4 www. NEWSBASE .com Week 33 19•August•2020