Page 15 - DMEA Week 39

DMEA LNG DMEA

South Africa pledges support for

Mozambican LNG projects

SOUTH AFRICA SOUTH Africa’s Deputy Minister of Trade, infrastructure network, Gina said. To date, she
Industry and Competition Nomalungelo Gina stated, the Development Bank of South Africa
Mozambique has high said earlier this week that her country was com- (DBSA) has committed to providing $120mn
hopes for offshore mitted to supporting natural gas development in funding for Mozambican infrastructure ini-
gas development, the efforts in neighbouring Mozambique. tiatives. Public and private-sector firms from
deputy minister said. Speaking during a virtual seminar on trade South Africa are playing an active role in this
and investment in southern Africa, Gina “very important venture,” she said.
pointed out that the two countries already had DBSA is not the only South African institu-
strong ties to each other. “South Africa is one of tion involved in Mozambique, she added. She
Mozambique’s great and major trading partners noted that two private South African banks,
and is also a major investor in Mozambique,” Standard Merchant Bank and Rand Merchant
she was quoted as saying by Devdiscourse. “It Bank, had joined the group of banks that had lent
is also among South Africa’s top five trading nearly $15bn to Mozambique LNG, the Total-led
partners in Africa. Our political and economic consortium that will use gas from the offshore
relations have remained strong and vibrant over Area 1 as feedstock for its LNG plant.
the years.” Gina went on to say that South Africa was
She also noted that Mozambique had high making co-operation with other African states a
hopes for the development of its offshore gas priority in light of the coronavirus (COVID-19)
reserves. “As we all know, Mozambique’s new pandemic. “This is one area that we’ve all seen
growth opportunity is anchored on the large the need to make sure that we produce locally
natural gas reserves and the associated liquefied [and supply] our mega-projects locally so that
natural gas [LNG] project in the Cabo Delgado we don’t depend on other countries to make sure
province,” she said. that we survive as countries. I believe as African
South Africa aims to support these gas pro- countries this is one opportunity we can grab
jects by helping Mozambique to expand its with both hands,” she commented. ™

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