Page 4 - GLNG Week 18 2021
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GLNG                                          COMMENTARY                                               GLNG




       Wider implications of unrest





       in northern Mozambique







       Amid doubts about an SADC plan to send troops to Cabo Delgado,

       Mozambican authorities should consider working with Tanzania to

       contain Islamist militants



        POLICY           UNREST in Cabo Delgado, Mozambique’s  regional multi-lateral group, to consider inter-
                         northernmost province, has already had a sig-  vening in Mozambique.
       WHAT:             nificant economic impact.             Last week, security officials from SADC’s
       ASWJ attacks have   Attacks  perpetrated  by  Ahlu  Sunnah  member states gathered in Maputo, the cap-
       already disrupted   Wa-Jamo (ASWJ), an Islamist militant group,  ital of Mozambique, to discuss the situation
       Mozambique’s economic   recently led France’s Total to declare force  in Cabo Delgado. At that meeting, delegates
       prospects.        majeure on Mozambique LNG, a $20bn  from Angola, Botswana, South Africa, Malawi,
                         scheme that calls for the development of Area  Tanzania and Zimbabwe called for sending a
       WHY:              1, a huge offshore natural gas field, and the con-  regional African force consisting of nearly 3,000
       Concerns about a   struction of an onshore gas liquefaction plant.  troops to northern Mozambique.
       spillover of the conflict   This declaration is anticipated to set work   The proposal drew sufficient support for it
       have led SADC to   on the project back by at least a year, so it is  to be slated for presentation to SADC’s heads
       contemplate a multi-  bad news for the service companies that were  of state during a summit scheduled for the first
       lateral military initiative.  counting on working for Total as contractors or  week of May. It also won applause from NJ Ayuk,
                         sub-contractors.                     the executive chairman of the African Energy
       WHAT NEXT:          The suspension of work on Mozambique  Chamber. Ayuk told the Journal of Petroleum
       If reports of Nyusi’s   LNG also has the potential to disrupt other  Technology last week that he believed SADC’s
       preference for    large-scale gas projects. ExxonMobil (US), the  plan would help curb conflict in Cabo Delgado
       bilateral deals prove   operator of the Rovuma LNG project, is also  relatively quickly. The group’s military force
       true, Tanzania could   planning to build an onshore complex to pro-  should be able to obtain results quickly enough,
       be a useful ally for   cess gas from its offshore site, known as Area 4.  he said, to allow Total to resume work in “less
       Mozambique.       It postponed its final investment decision (FID)  than 12 months,” he commented.
                         on the Rovuma LNG project in 2020, citing
                         concerns about low global energy prices and  Doubts about Maputo
                         the impact of the coronavirus (COVID-19) pan-  However, this optimistic take appears to have  The suspension
                         demic, and it could delay further (or abandon  been premature. SADC has not formally
                         the $30bn plan altogether) if northern Mozam-  adopted the plan, as its summit has been post-  of work on
                         bique remains in turmoil.            poned indefinitely.                    Mozambique
                                                               The ostensible reason for the delay is that only
                         Multi-lateral action                 one of the group’s three-member security team   LNG also has
                         But the problems in Cabo Delgado are not  would be able to attend the meeting in Maputo
                         just economic. They are also worrying from a  this week. Some observers believe, though, that  the potential to
                         humanitarian perspective. ASWJ’s bid to gain  SADC’s plans are being derailed not by unex-
                         control of northern Mozambique has led hun-  pected logistical complications but by deliberate   disrupt other
                         dreds of thousands of people to flee Cabo Del-  interference from Mozambique’s government.  large-scale gas
                         gado, and the number of refugees may soon   As evidence, they have cited Mozambican
                         reach 1mn. Meanwhile, most of the displaced  President Filipe Nyusi’s past assertions that his   projects.
                         are living in very poor conditions, with few pros-  government did not want or need foreign assis-
                         pects for improvement in the near term.  tance to address problems in Cabo Delgado.
                           The refugee crisis has also sparked politi-  They have also pointed to security sources’
                         cal concerns, as it has raised the prospect that  reports that the Mozambican leader sees bilat-
                         ASWJ attacks could lead residents of Cabo Del-  eral deals, such as the agreement his administra-
                         gado to flee to neighbouring countries, such as  tion recently struck with Portugal for assistance
                         Zimbabwe or Zambia. These worries may have  with military training, as preferable to multi-lat-
                         been one of the factors that convinced the South  eral initiatives such as the troop deployment
                         African Development Community (SADC), a  that SADC is contemplating.



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