1. Market Research
  2. > Energy & Environment
  3. > Energy
  4. > Oil and Gas
  5. > Natural Gas Market Trends

Mozambican Gas Sector: Major Opportunities Across Multiple Industries

  • May 2015
  • 73 pages
  • Frost & Sullivan
Report ID: 3002298

Summary

Table of Contents

Mozambique's Potential to Become the Qatar of Africa

Offshore natural gas discoveries made in Mozambique since 2010 have propelled the country as a new investment destination in sub-Saharan Africa. By exploiting these resources, Mozambique could become the third-largest exporter of liquefied natural gas in the next decade. However, conditions need to be met before this change can happen and benefit the entire Mozambican population, thus avoiding the resource curse that countries such as Angola and the Democratic Republic of Congo fell into. This research seeks to understand the current economic and legislative environment relating to the Mozambican gas industry and to analyse the investment opportunities that are expected to arise along the gas upstream, midstream, and downstream value chain.

Key Findings
- As of early 2015, Mozambique was estimated to be endowed with more than trillion cubic feet (Tcf) of recoverable natural gas resources, following recent major offshore discoveries made in the Rovuma Basin, close to the border with Tanzania. This is propelling the country into the top countries in Africa for gas reserves with Nigeria and Algeria.
- Sasol Limited (Sasol) started producing natural gas in Mozambique in 2004 from its Pande and Temane gas fields, located south of Beira. In 2014, natural gas net production amounted to billion cubic feet (Bcf), of which, % was exported to South Africa.
- If the significant Rovuma Basin gas resources start being developed, exploration and production (E&P) companies foresee that Mozambique could become the third-largest
exporter of liquefied natural gas (LNG) globally within the next decade.
- There is also a potential to create a domestic gas market which could benefit many sectors of the economy as well as the residential sector. This will require the implementation of anchor projects to justify the high expenses of building gas transportation infrastructure.
- These new resources are expected to be a game changer for Mozambique with the potential to export natural gas, not only to South Africa, but also globally—to Asia and Europe—when the LNG export terminal and/or floating LNG (FLNG) vessels become operational.
- However, a few conditions need to be met before this change can happen to benefit the entire population, thereby avoiding the resource curse that some countries, such as Angola and the Democratic Republic of Congo, have fallen into.
- One of the conditions entails resolving the political instability which re-emerged in 2013 between Frelimo, the ruling party, and Renamo, the former rebel group and main opposition party.
o Some industry stakeholders are convinced that this should not be an obstacle for the development of the gas industry, and rather think that perceptions about political instability and its related risks must change within the international community.
- Rampant corruption will also have to be curbed in order to avoid increasing wealth inequality and to ensure that the entire population benefits from the large unexploited gas reserves.
- The country’s basic transport and energy infrastructure remains largely underdeveloped. Addressing this challenge is paramount to help the country’s economy grow and diversify into more value-added sectors.
- A stable and transparent legislative framework is essential to attract investors in the country’s gas sector. The Government of Mozambique (GoM) made progress on the matter in 2014 by developing the following policy and legislation:
o Gas Master Plan (GMP), published in June 2014.
o Revised Petroleum Law (No. 21/2014), published in August 2014.
o Special Regime Decree (No. 2/2014), published in December 2014, with specific terms and conditions for the development of an LNG project relating to natural gas discoveries made in Areas 1 and 4 of the Rovuma Basin.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Veronica helps you find the right report:

Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Proppant Market by Type, and Region - Global Forecast to 2022

  • $ 5650
  • Industry report
  • May 2017
  • by MarketsandMarkets

“The proppant market is expected to grow at a CAGR of 6.9% during forecast period” The proppant market is projected to reach USD 9.87 billion by 2022, at a CAGR of 6.9% between 2017 and 2022. Proppant ...

Proppant Market by Type (Frac Sand Proppant, Resin-coated Proppant, Ceramic Proppant), and Region (North America, Europe, Asia-Pacific, South America, and the Middle East & Africa) - Global Forecast to 2022

  • $ 5650
  • Industry report
  • May 2017
  • by MarketsandMarkets

“The proppant market is expected to grow at a CAGR of 6.9% during forecast period” The proppant market is projected to reach USD 9.87 billion by 2022, at a CAGR of 6.9% between 2017 and 2022. Proppant ...

Gas Processing Industry Outlook in Europe to 2021: Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Processing Plants

  • $ 5000
  • Industry report
  • May 2017
  • by GlobalData

Gas Processing Industry Outlook in Europe to 2021: Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Processing Plants Summary "Gas Processing Industry Outlook in Europe ...


ref:plp2015

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.