Maputo — Mozambican President Filipe Nyusi has called for cautious management of Liquefied Natural Gas (LNG) megaprojects, taking into account the strengthening of security conditions in those regions where they are installed, especially in the northern province of Cabo Delgado.
According to the President, speaking, in Maputo on Tuesday, at a ceremony marking the 20th anniversary of the creation of the National Petroleum Institute (INP), "the management must be without emotions or exaggerated expectations of what the production of the mega projects in Mozambique should be.'
The President also called on Mozambican institutions to participate in the production of these resources, since currently they are largely owned by foreign companies.
For example, the Italian energy company ENI is responsible for the Coral Sul floating LNG Project, anchored in Area 4 of the Rovuma Basin, which started production in November 2022. The destinations of the liquefied natural gas produced by this platform are the European and Asian markets.
The French company TotalEnergies heads an onshore LNG project budgeted at 23 billion dollars, easily the largest foreign investment in Mozambique to date. However, the projects were interrupted in 2021 when terrorists attacked Palma town.
"Mozambicans should not just be consumers, but should invest in institutions as a way of strengthening institutional security and stability. Mozambicans need to manage expectations without emotions. When we directed the Bank of Mozambique and others to carry out studies on the functioning of the Sovereign Wealth Fund, we heard those who think that with the Fund there is a lot of money', Nyusi said.
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Nyusi tried to puncture such illusions. He pointed out that so far the only functioning natural gas mega-project is the Coral Sul floating platform -and the money that has come in from Coral Sul "isn't even enough to build a road from Maputo city to Xai-Xai, capital of Gaza province' (a distance of around 210 kilometres).
According to Nyusi, the INP must strengthen Mozambique's image as a destination for investments in the petroleum sector, facilitating the entry of concessionary companies and maintaining those already established in the country.
"We should always be improving the rules in order to have advantages. To do this, we need to invite companies to apply for concessions. We can't complicate things because investors will prefer other regions', he said.
The President said that the transformation of Cabo Delgado's natural gas reserves into an engine for sustainable and inclusive development will be assured with an efficient, resilient and strong vision and commitment.
"Together, we will continue to build a safer, more efficient and sustainable petroleum industry for Mozambique, an industry that not only benefits present generations, but one that looks with hope to generations to come', he said.
