Mozambique Oil & Gas: “Our location is strategic for markets in Asia” – Minister Klemens

“Our location is strategic for markets in Asia Pacific and Atlantic and for opportunities in the Middle East and India. We have been identified as a new emerging global focus for the supply of LNG. Mozambican gas is of excellent quality, which gives it a competitive advantage in terms of cost,” Minister of Mineral Resources and Energy, Leticia Klemens, said.

Mozambique is taking significant steps to position itself in the international LNG (liquid natural gas) trade, as the country prepares to become one of the world’s leading suppliers of this resource.

In fact, Notícias reports, Minister of Mineral Resources and Energy, Leticia Klemens, was involved in negotiations while attending the 6th Conference on the Production and Consumption of LNG, in Tokyo, Japan, a forum which brings together key global players in the LNG market.

The Minister of Mineral Resources and Energy met with representatives of Tokyo Gas and Jera, the world’s largest gas buyers, as well as representatives of Thai, Indian and European companies with whom Letícia Klemens negotiated gas sales contracts for Rovuma Basin Area 1.

The completion of these purchase and sale agreements is considered crucial to final investment decisions by the US multinational Anadarko.

Prospects for new natural gas reserves being discovered are encouraging, and by 2030 the country is expected to double the 180 trillion cubic feet so far found in the Rovuma basin in Cabo Delgado.

According to Klemens, the government has chosen markets in Asia, including Japan, to underwrite the expense of deep-water exploration, a process favoured in part by growing global demand for cleaner energy sources.

Despite significant changes in the international market, the production and marketing of LNG is the only way to develop existing deep water reservoirs in excess of 2,000 metres economically.

It is in this context that, as a result of a contract with BP for the sale of all gas production of Area 4 for a period of more than 20 years signed on June 1, the final investment decision was made on the part of the concessionaires, and the financing contracts valued at US$4.75 billion were signed, one of the largest investments ever in Mozambique.(Source: Notícias)