Page 6 - DMEA Week 13 2021

DMEA COMMENTARY DMEA

More problems for

Mozambique LNG

Latest ASWJ campaign in Cabo Delgado appears

to be directed at Total’s $20bn mega-project

AFRICA CABO Delgado, the northernmost province consortia – Coral South LNG, led by Eni (Italy),
in Mozambique, is under siege once again. On and Rovuma LNG, led by ExxonMobil (US) –
March 24, Ahlu Sunnah Wa-Jamo (ASWJ), the join Mozambique LNG in developing the coun-
WHAT: Islamist group that has been attempting to seize try’s offshore fields and turning the country into
ASWJ has attacked control of the province, launched an attack on an exporter of gas. Together, these three projects
a village just a few the village of Palma on the Afungi Peninsula. will require investments of $50bn or more. They
kilometres away from the Mozambique’s armed forces, known as Forças will generate billions of dollars in revenue for the
site of Mozambique LNG’s Armadas de Defesa de Moçambique (FADM), government, and they are likely to create thou-
onshore complex. have retaliated, but the outcome of the battle has sands of jobs. (Some of these jobs will emerge
not yet been decided. directly, through the hiring of local workers and
WHY: The human cost of ASWJ’s latest campaign is the contracting of local service firms, and some
The Islamist group is now sure to be steep. According to press reports, doz- will emerge indirectly, through the local busi-
openly targeting the gas ens of people have been killed, and thousands nesses that are likely to spring up to serve those
project, according to a have fled the area. involved in gas production, transportation and
Mozambican Defence Unfortunately, the violence is not likely to processing.)
Ministry spokesman. end any time soon. Even if FADM manages to
retake the town relatively quickly – and its abil- Human and political costs
WHAT NEXT: ity to accomplish this is not assured – ASWJ As such, the stakes are high – and they have been
Since attacks on gas has already achieved one of its goals. That is, it for some time, even if one ignores the vast sums
facilities attract attention, has succeeded in causing further problems for of money involved in the gas projects.
ASWJ is likely to step up Mozambique LNG, the consortium led by Total For one thing, the conflict has been grinding
its campaign in the near (France) that is trying to build a natural gas liq- on for more than three years. Mozambique’s gov-
future. uefaction plant just a few kilometres outside ernment and FADM have been fighting ASWJ
Palma within the framework of a wider invest- since October 2017, and the conflict has already
ment project worth $20bn. led more than 700,000 people to flee their homes.
In turn, Total’s problems are a major source According to UNHCR, the refugee agency of the
of concern for the Mozambican government. United Nations, the number of displaced people
Officials in Maputo hope to see two more could climb to 1mn by mid-year if the crisis does

P6 www. NEWSBASE .com Week 13 01•April•2021