The significant and unprecedented energy shock of 2022 that was triggered by the war in Ukraine continues to reverberate through the global economy, with governments and companies in Europe and on other continents scrambling to secure alternative oil and gas sources that are reliable and cost-competitive.
Mozambique, which in late 2022 officially started exporting liquefied natural gas (LNG) produced from vast reserves in the northern region of Rovuma, is well-positioned to be the alternative. The inaugural shipment for sale to the international market saw President Filipe Nyusi hail the cargo as a major milestone in the nation’s socioeconomic development, as it marked the realization of over a decade of multibillion-dollar investments and underlined the energy-rich republic’s potential.
Given it could become one of the top 10 gas exporters in the world through the sustainable development of its precious energy products, Mozambique is fortunate to call on the experience, talent and skills of state oil firm Empresa Nacional de Hidrocarbonetos (ENH).
Ideal partner offers wealth of experience
With decades of experience in exploration, production, commercialization, transportation and distribution of natural gas, ENH is the ideal partner for entities seeking to tap into Mozambique’s oil and gas wealth.
A strong and comprehensive corporate structure provides the support and specializations for a broad range of upstream and downstream developments. ENH’s affiliates include Companhia Mocambicana de Hidrocarbonetos, set up to represent ENH in gas production and processing in the Pande and Temane gas fields, Mozambique´s first production fields, while Companhia Mocambicana de Gasoduto represents ENH´s interest in the cross-border gas transmission pipeline known as ROMPCO (Republic of Mozambique Pipeline Co.).
Another key affiliate is ENH Logistics, which handles infrastructure and support services to the oil and gas industries, including logistics bases, maintenance and port services.
“Mozambique has the necessary attributes and resources to help address energy security supply concerns in Asia and, most recently, Europe,” said Estevao Pale, ENH chairman and CEO.
“The discovery of world-class gas reserves in the north of Mozambique factually confirms this statement. For this reason, we invest in finding credible and committed partners who are able to work with ENH to unlock and develop the vast reserves already discovered, as well as expand the potential still to be found in the country.
“The current global context is highly complex and unpredictable. In a broader spectrum, our geographic location, equidistant access to European and Asian markets and the quality and size of gas resources, make Mozambique a long-term, price-competitive and reliable source of LNG for energy generation.”
Over the past year, just over 30 LNG cargoes have departed Mozambique as the energy sector opens a new page in its infrastructure development story.
According to Pale, apart from working diligently with international partners on the Coral Sul LNG project, ENH is also involved in developing other energy facilities, including those with leading Japanese players such as Jera Co., Tokyo Gas Co. and Mitsui & Co.
“We see the entry of Mozambique in the global list of exporters of LNG as a stepping stone towards many more accomplishments,” he added proudly. “The country has vast potential to become a reference LNG producer in the global market.”
“For one, we are now able to prove that the country is ready for projects of this magnitude. Furthermore, as more projects are materialized, so are the skills of Mozambique’s human capital.
“With the latter in place, Mozambique will be in a better position to maximize the results of the oil and gas projects and best serve the needs of the various markets with better, cleaner, safer and reliable energy.”
The senior executive described the deal for a majority stake in ROMPCO as “groundbreaking.” ROMPCO owns and operates a 865-km pipeline that transports huge volumes of natural gas from Mozambique’s Pande and Temane gas fields to markets in Mozambique and South Africa.
“The pipeline is a potential asset and enabler for other projects surrounding Pande and Temane, considering that the country is still unexplored, making the prospects of development proportionally equal,” he said.
“Having the two governments as majority shareholders of the cross-border pipeline is strategic, since the pipeline is the single source of gas to the South African market and gas is the immediate alternative supplier of cleaner energy.
“As the LNG projects are gearing up, there is the possibility of bringing imported LNG to Maputo in southern Mozambique and through the ROMPCO pipeline to South Africa.”
Human resources also offer hope
Given the energy industry’s growing emphasis on sustainability and measures to halt climate change, ENH’s extensive and proactive corporate social responsibility program makes it a good match for foreign partners.
“Areas of priority for its CSR activities are infrastructure, health, education, gender equality and food security, as they are considered enablers of change,” Pale said.
“Mozambique is a young country, with much achieved since independence in 1975 and much in progress,” he continued. “Our main asset, apart from the abundant natural resources, is people. Much of our population is young, with big dreams and an enthusiasm to learn, work and earn a better life.
“As such, we seek partners who aspire for the same, so that we can move forward. The opportunities are immense and diverse. We very much look forward to receiving the kind of partners that share the same aspiration and determination.”
https://info.japantimes.co.jp/international-reports/pdf/20231227-GI-Mozambique.pdf
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