Day: May 6, 2022

Eni Rovuma Basin and Government of Cabo Delgado sign a cooperation agreement for the implementation of sustainable development projects

Eni Rovuma Basin, on behalf of Area 4 Partners, signed today a Cooperation Agreement with the Government of Cabo Delgado for the implementation of an integrated resilience project to strengthen the communities’ ability to protect and restore mangroves, thus contributing towards the mitigation of climate changes. This project also includes the development of a sustainable agriculture program and access to water and sanitation to be implemented in the district of Mecufi.

The mangrove restoration and conservation program will consist of replanting the seedlings in the Zaulane A, Muaria and Muinde Localities and will cover an area of about 10 hectares along the coast of Mecufi. In parallel, economic diversification activities will be promoted, such as beekeeping and aquaculture, to serve as an alternative source of income for the communities, and to help protect mangroves and biodiversity ecosystems that are at risk. The agreement includes the promotion of educational and awareness campaigns on the environmental conservation, which will be performed in the schools within the communities.

The sustainable agriculture program will cover an area of 40 hectares and consists on the implementation of a combined system of forest conservation and agriculture, which will allow for production of food, as well as the recovery of degraded areas and the transmission of good practices in the management and use of natural resources. This component will benefit around 500 small farmers.

Regarding access to water, 6 water wells will be built and two more will be rehabilitated in the villages of Muária, Sambene and Natuco, in order to increase the access to potable water and improve hygiene and sanitation conditions for these communities.

The Mecúfi integrated resilience project reaffirms Eni Rovuma Basin’s commitment to the United Nations’ Sustainable Development Goals (SDGs) and it fits into Eni’s strategy to reach net zero emissions by 2050, combining environmental, social and economic sustainability to deliver on a just energy transition. This project is executed as part of the Sustainability Plan of the Coral South project of Area 4 and it will be implemented by Universidade Lúrio.

The Coral South project will be the first to put into production considerable resources of natural gas in Mozambique, starting in the second half of 2022. It is operated by Eni Rovuma Basin on behalf of the Area 4 partners, namely Eni, ExxonMobil, CNPC, Galp, Kogas and Empresa Nacional de Hidrocarbonetos.

About Eni

Eni has been present in Mozambique since 2006. Between 2011 and 2014, the company discovered supergiant natural gas resources in the Rovuma basin, in the Coral, Mamba Complex and Agulha reservoirs, holding estimated 2,400 billion cubic metres of gas in place. . Eni also holds exploration rights to offshore blocks A5-B, Z5-C and Z5-D in the Angoche and Zambezi basins

Source:Club of mozambique

Addressing security challenges could help Mozambique amplify gas market growth

Mozambique’s gas resources have the potential to meet both regional and international gas demand, however, delays in the development of gas projects due to political instability in the southern African country continue to restrain market expansion
The growth of Mozambique’s gas market in 2022 and onwards will be a game changer for Africa’s hydrocarbon market and will help set the continent on a trajectory towards becoming a global energy hub, according to the African Energy Chamber’s (AEC) Q1 2022 Outlook, The State of African Energy. At a time when gas production across Africa needs to ramp up to meet growing energy demand, factors such as inadequate funding in new E&P activities and diminishing production in legacy projects is challenging the ability of African hydrocarbon producing countries to expand gas output. However, large-scale projects and investments made in Mozambique – with its 100 trillion cubic feet of reserves – can help expand Africa’s gas market.

Supply vs demand levels between 2022-2025 suggest that there is sufficient Liquefied Natural Gas (LNG) supply to satisfy growing demand as new projects come online in 2022 such as the Coral Floating Liquefied Natural Gas project (FLNG) in Mozambique, states the AEC’s Outlook. The Coral FLNG, comprising approximately 450 billion cubic metres of gas in the Coral South Field in Area 4 in the Rovuma Basin off the coast of Mozambique, will enable the southern African country to produce 3.4 million tons per annum (mtpa) of gas for export to Europe and Asia in 2022. Additionally, TotalEnergies’ 12.8 mtpa Mozambique LNG project and Eni and ExxonMobil’s 15.2 mtpa Rovuma LNG project have the potential to transform the regional gas market, positioning Mozambique as a highly competitive gas exporter. Despite both projects having been delayed, progress is being made to get these developments back on track.

According to the Energy for Growth Hub, Mozambique’s gas could bring in $50 billion in foreign investments and enable the government to reap $95 billion in revenues over the next 25 years with the right policies and investments in place as well as a capital attractive political environments. Mozambique can also utilize its energy reserves to curb energy poverty as the percentage of its population living with no access to reliable energy continues to increase from 19.6 million in 2007 to over 21 million in 2017, according to the United Nations Development Programme.

“Mozambique’s gas reserves have the potential to address energy poverty across the entire southern African region by helping neighbouring countries such as Zimbabwe, Botswana, Malawi and South Africa meet gas demands. However, political instability in the country and a lack of investment in enabling infrastructure will need to be addressed for Mozambique to become one of the top-10 global LNG exporters,” stated NJ Ayuk, Executive Chairman of the AEC.

Despite having vast gas reserves, Mozambique’s progress in development and monetization remains slow. This highlights a growing need for the government to put in place a conducive political environment that allows investors and international majors to participate in the market. In this regard, the AEC’s annual investment summit, African Energy Week (AEW), which will take place in Cape Town from 18 – 21 October 2022, will discuss measures the government of Mozambique can implement to fast-track the development of its gas industry. AEW 2022 will host panel discussions and high-level meetings about the role of Mozambique’s gas industry in addressing energy poverty across the African continent and how the country can set up a capital-attractive regime to boost its market.

About African Energy Week (AEW):

AEW 2022 is the AEC’s annual conference, exhibition and networking event. AEW 2022 unites African energy stakeholders with investors and international partners to drive industry growth and development and promote Africa as the destination for energy investments. Key organizations such as the African Petroleum Producers Organization, as well as African heavyweights including Equatorial Guinea and Nigeria, have partnered with AEW, strengthening the role the event will play in Africa’s energy future.

Source:Club of mozambique

Mozambique: State to collect US$20M on sale of Vale assets

Mozambique will receive US$20 million (€18.9 million) in capital gains from the sale of assets from Brazilian company Vale to India’s Vulcan, the Mozambican minister of mineral resources and energy said on Thursday in Maputo.

Carlos Zacarias, who was speaking at the end of a meeting between the Mozambican president, Filipe Nyusi, and representatives of Vulcan, said that the two companies and the Mozambique Tax Authority were in negotiations aimed at a definitive clarification of the amount payable to the Mozambican state for the deal.

“The Tax Authority, the seller and the buyer are in discussions to clarify the real amount to be paid,” he said.

As part of the operation, the Indian multinational will carry out investments in the mines and logistics component that it bought from Vale, also keeping jobs, he added.

The minister for mining resources and energy said that the likely destination of the coal to be extracted from the mines would be Vulcan’s steel factories in India.

At the end of April, Vale announced it had completed the sale of coal mining assets in Mozambique to India’s Vulcan Minerals, a deal worth US$270 million (€253 million).

“Vale concluded on 25 April 2022 the process of responsible transfer of the Moatize operation and the Nacala Logistics Corridor to Vulcan Resources, based on the binding asset sale agreement,” Vale Mozambique said in a statement to the media in December.

The mines are located in Tete province, central Mozambique, and, according to Vale, the transaction complied with the conditions set out by law.

Vale was in Mozambique for 15 years, having operated the Moatize mine and 912 kilometres of railway in the Nacala Logistics Corridor to transport coal.

At the beginning of 2021, the company announced its intention to “divest from its coal assets” and focus on “low carbon mining.

Source:Club of mozambique

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