Mozambique's natural gas projects may resume work within months - Energy

The Cabo Delgado province in Mozambique has transformed from a region blessed with abundant investment in natural gas projects to a war zone that threatens the industry over the past years.

With the development of the security situation in the province, the European Union ambassador to Mozambique, Antonio Gaspar, believes that the province will enjoy security in the coming months, and this will allow the return of huge investments in natural gas.

He said the situation in the province has become safer than before, after troops from Rwanda and the Southern African Development Community (SADC) began supporting the Mozambican forces since last year.

Gaspar’s comments came on the sidelines of an interview with the Portuguese news agency Lusa.

mode monitoring

Gaspard explained that the EU is monitoring the situation and continuing the dialogue in coordination with SADC and the Rwandan army.

Natural gas
A Rwandan soldier in Palma, northeastern Mozambique – Photo from

He said: “This does not mean that the situation is completely under control, and we cannot lose sight of our caution, but the situation has improved, and these forces, in cooperation with Mozambique, have achieved important results.”

Gaspard believes that the situation requires a lot of work to do for a long time, fearing friction between the rebels and the local population, especially since the border with Tanzania remains porous.

Nevertheless, the EU ambassador to Mozambique expressed his optimism, and had no doubts about the return of Total Energy to resume operations or the return of projects in the Afungi Peninsula, after stopping a year ago in connection with the attack on Palma.

He added, “It is the investors, led by Total Energy, who have to make the decision with all guarantees.”

He added that the recent attacks near Afungi were shocking, and the companies were forced to suspend their operations.

He explained that investors want to return with all guarantees, especially that there is an important opportunity for natural gas in Mozambique, in light of the European Union’s need to reduce – and end – dependence on hydrocarbon resources from Russia.

While Gaspard expects life to return to normal within months, he believes it will be safe to do so across the region.

He believes that there will be no risks to double the security in the areas of natural gas projects, such as the province of Palma and Mosimboa da Praia, or the rest of the province.

The province of Cuba Delgado is rich in natural gas, but has been the target of terrorist attacks since 2017 by armed rebels.

Attacks by Rwanda and SADC since last July have allowed areas controlled by the rebels to recover, but their escape has raised alarm in other areas.

Promote clean energy

On the other hand, the International Finance Corporation announced the signing of an agreement with the Ministry of Mineral Resources and Energy in Mozambique to develop a 1,500 megawatt hydropower project, as published on The Club of Mozambique.

Natural gas
Hydroelectric power plant – Image via Africa21

Once completed, the Handa Nkoa project will provide electricity to meet domestic demand, transforming the country into a regional energy hub.

Mozambique is expected to export the remaining capacity to neighboring countries, including South Africa, amid rising demand for clean energy.

The project will also accelerate the transition to clean energy to address the climate change crisis in South Africa.

According to reports, the project cost is estimated at about $4.5 billion, and will develop a dam, power plant and infrastructure with a length of 1,300 km, to transfer high voltage from the project site in Tete province to Maputo, the country’s capital.

Project Implementation Office Director Carlos Yum said Handa Nkua will support the realization of the government’s vision to improve access to electricity for all by 2030, stimulate industrialization and promote growth through reliable and competitive electricity transmission infrastructure.

IFC’s Senior Regional Director in Mozambique, Carlos Katsuya, added that clean and sustainable energy is a major driver of economic and social development, explaining that the institution’s experience in developing and financing mega projects in Africa and the world will contribute to enhancing Mozambique’s supply of affordable renewable energy, and meeting the growing demand. on electricity in the country.

The Foundation will work with the government in cooperation with the Project Development Office “GMNK” on its structuring, review of technical designs, environmental safeguards, and commercial and financial structuring.

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