Page 16 - AfrOil Week 20 2021

AfrOil NEWS IN BRIEF AfrOil

Notably, as one of the delayed projects involves a regarding the use of domestic gas. The declara- We have witnessed multiple cases where indig-
consortium led by French supermajor Total, who tion that there is an availability of domestic gas enous companies are left behind due to the lack
on April 26 issued a force majeure declaration to for Mozambique’s economic development is not of capabilities, but the fact is, they never stood a
its LNG project in the Cabo Delgado province sufficient. The energy sector should work with chance in the first place. It is imperative for the
due to the security situation at the moment. government on the right pricing for domestic gas transfer of technology and training to occur.
Total’s force majeure declaration has sent that creates local petrochemical industries that This period of force majeure should not be a
the project into a delay, negatively impacting outperform their competition. This would create signal to go to sleep. On the contrary, it should
Mozambique’s economic outlook, several inter- a much more lasting effect in Mozambique, as it be a wake-up call for capacity building of local
national and local companies and workers who would create countless jobs and bring life to an companies. This way, when the project resumes
are now uncertain when the project and their otherwise stagnant economy and communities. (which it will), these companies will be capable
operations will resume. Make no mistake, this To increase the effect in the Mozambican of providing higher quality services, further
has put a lot of companies and even some work- economy, the way we manage local content accelerating and supporting the growth of the
ers and even communities in Cabo Delgado’s should also be addressed. We should consider Mozambican economy.
livelihoods at risk. results based local content programmes and African Energy Chamber, May 18 2021
The African Energy Chamber (AEC) rec- maybe have some set aside programmes that are
ognises Total’s and the Mozambican govern- more inclusive of the population of Cabo Del- SNEL, Kivu Power
ment’s effort over the past three weeks to figure gado. Such programmes should include training
out solutions and arrangements to address the and development and entrepreneurial drive to sign contract for
security issues in Cabo Delgado. We continue to open doors of opportunity to everybody. We in
believe that Total’s LNG project should resume the energy industry must seriously rethink the methane extraction
sooner than later, with even more decisiveness way these programmes are being developed, as
and resolve, under the leadership of Presi- they could be an excellent solution for the secu- Société Nationale d’Électricité (SNEL), the Dem-
dent Filipe Nyusi with whom the AEC has had rity issues in Cabo Delgado. More qualified jobs ocratic Republic of Congo’s national electricity
recent conversations. The Terror attacks have mean fewer disqualified criminals. Mozam- company, and Kivu Power have signed a contract
given President Filipe Nyusi’s presidency a clear bicans can no longer be the last hired and the first for the exploitation of methane gas from Lake
focus: to protect the Mozambique people and fired. We should strive to give this opportunity Kivu, located on the border of the Democratic
investors and defeat terrorism while expanding to everybody. We must protect the contracts of Republic of Congo (DRC) and Rwanda.
and promoting economic growth. The Afri- local companies during this period of force Signed at last week by Jean Bosco Kayomb,
can Energy Chamber is encouraged that Pres- majeure and also workers. Mozambican work- SNEL’s CEO, and officials of Kivu Power Co., the
ident Nyusi administration’s response, which ers and service companies do have rent, school contract aims to utilise methane-to-power solu-
has been a combination of military action and fees, loans, and other engagements and we must tions while providing a sustainable electricity
strong defensive measures to protect everyone be sensitive not to continue being that industry supply to provinces throughout the DRC, with
in Mozambique. of that past that does not care about people. At a specific focus on South Kivu.
“We are encouraged by the meeting between the end of the day, it is their resources that our “Lake Kivu has gas. It has accumulated and
President Nyusi and the Total Chairman Patrick industry is extracting. if left unexploited, it could do damage as it is
Pouyanné. The assurance of a return to Mozam- The multilateral institutions and the energy harmful. This is why these kinds of projects are
bique by Pouyanné is a step in the right direction industry should take advantage of this force needed. The first phase will produce 30 MW,
and credit should be given to all parties for the majeure suspension period to work with the which will serve as a start-up base to supply
hard work. We continue to believe that Mozam- government to create a rapid and immedi- South Kivu. The network is interconnected with
bique deserves the respect and support it needs ate programme that will develop indigenous North Kivu [and] this production will be con-
to stabilise the region and get the Mozambique Mozambican companies to develop their techni- nected with that which we have on Ruzizi 1, 2
LNG project back up and running again, the cal, financial, and administrative capabilities so and later 3,” stated Kayombo.
cool-off period of the force majeure should be they can add actual value to the energy projects. Energy Capital & Power, May 17 2021
an opportunity to set up better local content
structures, fix what is not working, push for an
enabling environment and for a stronger come-
back for Mozambique’s energy sector,” stated
NJ Ayuk, Executive Chairman of the African
Energy Chamber.
“We should not forget that Mozambique will
be producing Africa’s only Carbon-neutral LNG
that will be exported and used domestically in
a world which is focused on reducing our net
carbon footprint from well to wheel. Business
gumption and political will is needed at this
time, but make no mistake, Mozambique LNG
is going to happen and there are better times
ahead,” concluded Ayuk.
The oil and gas industry has a much more
significant role to play in making sure that the
projects have lasting stability. We have to rethink
how we have been operating as an industry

P16 www. NEWSBASE .com Week 20 19•May•2021