Good Times Ahead: Mozambique to raise US$115 bi in gas revenues between 2020 and 2040

Mozambique will receive US$115 billion in revenue from exploration of natural gas resources in the country between 2020 and 2040, according to estimates included in a report from the International Energy Agency (EIA) on Africa. According to the EIA report Mozambique will only start exporting liquefied natural gas (LNG) “in the early years of the 2020s,” which would be a delay of at least two years compared to the target set by the Mozambican government.

The International Energy Agency said it was evident “that the mega-projects will not likely spread the benefits of gas to the population in themselves,” since these large projects “are capital intensive, with limited direct impact in terms of employment. ”

The EIA believes that to ensure greater impact, these projects need to act as catalysts to develop pipelines and other infrastructure, facilitating the distribution of gas to smaller commercial and residential consumers in the process.

In fact distribution is one aspect that is not in Mozambique’s favour, as the largest natural reserves are quite far away from the heavily-populated area of Maputo. (macauhub/MZ)