Zürcher Nachrichten - Mozambique looks to revive gas deals stalled by unrest

EUR -
AED 4.26841
AFN 80.362394
ALL 97.542216
AMD 446.735356
ANG 2.080099
AOA 1065.794205
ARS 1494.414015
AUD 1.776887
AWG 2.092071
AZN 1.980459
BAM 1.954642
BBD 2.348809
BDT 141.226338
BGN 1.956132
BHD 0.43854
BIF 3466.946195
BMD 1.162261
BND 1.493215
BOB 8.038238
BRL 6.486005
BSD 1.163311
BTN 100.147673
BWP 15.618748
BYN 3.807045
BYR 22780.325028
BZD 2.336716
CAD 1.596076
CDF 3354.287055
CHF 0.932807
CLF 0.029182
CLP 1120.296341
CNY 8.342655
CNH 8.346165
COP 4674.330945
CRC 587.052233
CUC 1.162261
CUP 30.799929
CVE 110.199718
CZK 24.634179
DJF 206.947405
DKK 7.463699
DOP 70.258379
DZD 151.514244
EGP 57.439973
ERN 17.433922
ETB 161.636047
FJD 2.620788
FKP 0.864949
GBP 0.866519
GEL 3.150183
GGP 0.864949
GHS 12.127816
GIP 0.864949
GMD 83.106172
GNF 10094.020343
GTQ 8.931709
GYD 243.385819
HKD 9.117884
HNL 30.445964
HRK 7.532663
HTG 152.739518
HUF 398.923459
IDR 18977.696027
ILS 3.902549
IMP 0.864949
INR 100.127437
IQD 1523.897249
IRR 48945.741055
ISK 142.354235
JEP 0.864949
JMD 186.029797
JOD 0.824089
JPY 172.932309
KES 150.300962
KGS 101.640213
KHR 4662.238109
KMF 491.989694
KPW 1046.046309
KRW 1616.942576
KWD 0.355234
KYD 0.969426
KZT 620.152624
LAK 25087.138481
LBP 104232.653
LKR 350.972086
LRD 233.241828
LSL 20.596898
LTL 3.431856
LVL 0.703041
LYD 6.327252
MAD 10.519168
MDL 19.788278
MGA 5176.933206
MKD 61.523554
MMK 2439.678938
MNT 4168.013035
MOP 9.404829
MRU 46.275587
MUR 53.119698
MVR 17.903172
MWK 2017.205016
MXN 21.795313
MYR 4.935007
MZN 74.338683
NAD 20.596898
NGN 1779.387897
NIO 42.814637
NOK 11.840776
NPR 160.236077
NZD 1.948796
OMR 0.446894
PAB 1.163311
PEN 4.140847
PGK 4.817146
PHP 66.377189
PKR 331.310933
PLN 4.244785
PYG 9003.666265
QAR 4.229694
RON 5.072695
RSD 117.080642
RUB 91.265035
RWF 1681.00418
SAR 4.36165
SBD 9.64543
SCR 17.082281
SDG 697.942292
SEK 11.235354
SGD 1.492813
SHP 0.913355
SLE 26.62005
SLL 24372.046713
SOS 664.806172
SRD 43.245469
STD 24056.466061
STN 24.485495
SVC 10.17897
SYP 15112.803405
SZL 20.592801
THB 37.628259
TJS 11.196867
TMT 4.079538
TND 3.419874
TOP 2.722137
TRY 46.897678
TTD 7.897322
TWD 34.181766
TZS 3030.404801
UAH 48.58252
UGX 4168.530579
USD 1.162261
UYU 46.882227
UZS 14725.276806
VES 135.943958
VND 30404.760344
VUV 138.92149
WST 3.080055
XAF 655.568644
XAG 0.030448
XAU 0.000347
XCD 3.14107
XCG 2.096558
XDR 0.815317
XOF 655.568644
XPF 119.331742
YER 280.163552
ZAR 20.584139
ZMK 10461.752209
ZMW 26.785133
ZWL 374.247723
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

Mozambique looks to revive gas deals stalled by unrest
Mozambique looks to revive gas deals stalled by unrest

Mozambique looks to revive gas deals stalled by unrest

Global energy giants were quick to halt their Mozambican gas projects when jihadist violence erupted on their doorsteps. After months of calm, reviving those multi-billion-dollar projects is a much slower job.

Text size:

TotalEnergies CEO Patrick Pouyanne visited Maputo on Monday, saying he was optimistic about the $20-billion project.

"A lot of progress has been done, let me be clear," Pouyanne said, but added more work was needed to ensure lasting peace.

"Security is not only a matter of armed forces," he said. "It's also a question to work together with the population."

Vast natural gas deposits were discovered in the northern province of Cabo Delgado in 2010, the largest ever found south of the Sahara. Once tapped, Mozambique could become one of the world's 10 biggest exporters.

Since then, the Muslim-majority province has attracted three mega-projects: TotalEnergies' Mozambique LNG; ExxonMobile's Rovuma LNG; and ENI's Coral-Sul FLNG.

But in late 2017, armed insurgents began launching raids in the region, located near the Tanzanian border. Jihadists committed a series of beheadings and torched entire villages, claiming allegiance to the Islamic State.

Since then, 3,500 people have been killed, and 820,000 have fled their homes.

- Safety offshore -

Last March, insurgents made a surprise attack on the coastal town of Palma, the gas-hub near the TotalEnergies project, which the company promptly suspended.

"TotalEnergies should return this year, if it's going to meet its 2026 production goal," said Borges Nhamirre, a Maputo-based researcher for the Institute of Security Studies.

Of the three projects, only ENI's is on track. The Italian company's LNG facility is entirely offshore. ENI told AFP that it's set to begin production in the second half of 2022.

Coral Sul, the first floating LNG facility deployed in deep waters off Africa, arrived in Mozambique in early January. Once operational, it can produce 3.4 million tonnes of LNG a year.

With its 6.2-billion-euro investment, ENI said simply: "We continue to monitor security developments in the Cabo Delgado region and work closely with the government on this matter."

Experts say the offshore facility poses fewer security risks. Nhamirre pointed out that "in four years of violence, there hasn't been a single attack at sea, except for a few raids on fishermen near the coast."

The ExxonMobil project is at a standstill. Once expected to produce 15.2 million tonnes of LNG a year, the company doesn't seem ready to move ahead until the security improves.

- Future windfall -

"Maputo is determined to have this project," said Alexandre Raymakers, from the risk consultancy Verisk Maplecroft. "They need the revenue. We're talling about 35-60 billion dollars".

Mozambique's entire GDP is only $13 billion.

For the last six months, Mozambique's military has relied on 3,000 foreign troops sent by Rwanda and the Southern African Development Community (SADC) regional bloc.

The mission is officially open-ended, but Raymakers said "it's unlikely to last longer than 12 months due to SADC's limited ability to fund the mission."

"It's not about the number of troops they have on the ground," he said. "They have limited air cover, few helicopters."

And the insurgents have already adapated to the foreign forces, retreating to neighbouring Niassa province, which is now the rear base for their guerrilla attacks.

In January, the non-profit Acled documented about 30 attacks.

Mozambican President Filipe Nyusi claims progress in his anti-insurgent campaign.

But observers say the problem is more than military.

Cabo Delgado is about 2,000 kilometres (1,200 miles) north of Maputo, and is one of the poorest parts of a very poor country.

The lack of investment in infrastructure or opportunities for the youth make it easy for insurgents to find new followers.

E.Leuenberger--NZN