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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

Mozambique: Floating LNG platform moored off Cabo Delgado

The floating platform that will be used in the production of Liquefied Natural Gas (LNG) from the Coral Sul gas field off the coast of the northern Mozambican province of Cabo Delgado is now in place and safely moored.

According to the contractor for the mooring and hooking up operation, Petrolis, the work was completed on 4 March following the tensioning of the twenty mooring lines.

In a statement released on Monday, the company noted that “our team has now successfully and safely completed the mooring activities” and added that pre-commissioning activities are planned to continue until June 2022.

The company revealed that to carry out the operation it deployed a crew of 44 people including engineers, managers, technicians, and other essential staff.

The platform reached Mozambican waters on 3 January after a lengthy voyage from South Korea, where it was built. It will now be connected to the production lines after which the process of testing all of the equipment and licensing the plant will be carried out.

Read: Coral-Sul FLNG ready to sail away to Mozambique’s Rovuma basin, in Area 4 first development

The Coral Sul project is owned by a consortium headed by the Italian energy company, ENI, and is due to begin operating in the second half of this year with a production capacity of 3.4 million metric tonnes of LNG per year, all of which has been secured by British Petroleum (BP) through a long term contract.

It lies within the Rovuma Basin Area Four concession and will be the first project to produce LNG in Mozambique. The main participant in Area Four is Mozambique Rovuma Ventures, a partnership between ENI, the US oil and gas giant ExxonMobil and the China National Petroleum Corporation (CNPC), which together control 70 per cent of the undertaking. The remaining 30 per cent is divided equally between the Mozambican state enterprise ENH, Galp Energia of Portugal, and Kogas of South Korea.

Source:Club of mozambique

Mozambique: Manica sets up gold processing plant

Construction of a gold processing plant valued at more than US$3 million (around 190 million meticais) in the town of Mariza. Machipoanda administrative post, in Manica district, is entering its final phase.

The facility, installed in the village of Nhamachato and with capacity to process 150 tons of hard rock daily, is 80% complete.

The plant, set up by a consortium of four companies, is in a testing phase that will end in May of this year, the plant’s mining manager told Radio Mozambique.

The consortium – made up of the mining companies KD Prospero, África Minerais, Clay & Gravel Mining, and Harvest Fame – owns several mines, both open-cast and underground, in the Machipanda administrative post.

When it reaches maximum production capacity, the gold processing plant will employ more than two hundred people.

Inspector General of the Ministry of Mineral Resources and Energy, Obede Matine, visited the plant and associated mine, and left some recommendations regarding the direction of developments.

Source:Club of mozambique

South Africa’s Gigajoule expects to import first LNG cargo at new Mozambique terminal by mid-2025

  • The Matola terminal could become South Africa’s first major LNG supplier.

South African energy company Gigajoule is confident of reaching financial closure by year-end ahead of construction of its $550 million Matola LNG import terminal in Mozambique with joint development partner TotalEnergies TTEF.PA, the chief executive of the privately-held firm said on Thursday.

The liquefied natural gas (LNG) terminal, which also has Mozambican shareholders, is expected to receive its first shipments of gas to a permanently moored floating storage and regasification unit in Matola harbour, close to Mozambique’s capital Maputo, by mid-2025, CEO Jurie Swart said on the sidelines of a gas conference in Cape Town.

The Matola terminal could become South Africa’s first major LNG supplier at a time government wants to significantly expand its domestic gas market but faces a gas supply crunch as onshore gas fields operated in Mozambique by Sasol start running dry within a few years.

Sasol’s Tande and Temane fields in southern Mozambique supply the bulk of South Africa’s gas needs via the 865 km Rompco pipeline. According to domestic industry body IGUA’s 2021 annual report, South Africa currently faces a gas supply shortfall of some 170 petajoules a year.

“Our realistic case is that construction for the LNG import facility will start in January next year and first gas is seen mid-2025,” chief executive Swart told Reuters.

He said Gigajoule, which is also co-developing a 2 000 megawatt gas-to-power plant close to Matola, intends to link the terminal to the Rompco pipeline to supply gas to South Africa.

“Financing is not that difficult … in the commercial market that we’ve canvassed for both these projects we think we’ve got full subscription from all the major commercial banks in South Africa and export credit agencies,” Swart said.

Matola is independent from Total’s $20 billion LNG development to the north of Mozambique that was disrupted by violence caused by insurgents linked to Islamic State, although the French oil major expects to restart the project this year.

Source:Club of mozambique

ExxonMobil increases support of internally displaced people in Cabo Delgado

As part of the commitment to the development and wellbeing of the communities in which it operates, ExxonMobil Moçambique, Limitada announced the donation of essential food and hygiene products intended to benefit over 1200 internally displaced people in Cabo Delgado. The donation, procured from Pemba based suppliers, will provide packages for family comprised of cooking oil, rice, sardines, tea and includes s hygiene related goods.

This donation builds on the established partnership with VAMOZ, a civil society organization that delivered 15 tons of corn flour to Quitupo in September and further collaborates with the ongoing efforts of the National Institute for Disaster Management (INGD). The $75,000 donation consists of 18 tons of rice, corn flour, beans, sugar and salt and thousands of WASH related items, namely sanitary pads, detergents, water purifiers and soap units.

“We are pleased to work with the Mozambican government and VAMOZ in support of the impacted communities of Cabo Delgado.” said Jos Evens, General Manager of ExxonMobil Moçambique, Limitada. “Food security, personal health and livelihood restoration are primary concerns affecting the IDP community, and we will continue to work collaborative with the local authorities and our implementing partners to assist the affected families.”

“These donations are crucial to the government’s planned humanitarian response to the internally displaced.” Said Elizete Manuel of the National Disaster Management Institute. “We are thankful to ExxonMobil for their continued support in the response here in Cabo Delgado”.

About ExxonMobil

ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world’s growing energy needs. In Mozambique, ExxonMobil holds a 25 percent indirect interest in Area 4 and will lead the construction and operation of future natural gas liquefaction facilities. In addition, ExxonMobil was awarded the joint rights to negotiate the Angoche basin (A5-B) and the Zambezi Delta (Z5-C and Z5-D) concessions, as part of Mozambique’s fifth licensing round

Fuel price hikes: Could be worse, Finance Minister tells Parliament | Mozambique

  • Minister of Economy and Finance says that the price of gasoline could be 75 meticais per litre, instead of 69. The increase was not higher because of the necessity “to do things gradually”, Adriano Maleiane said.

The Minister of Economy and Finance of Mozambique, Adriano Maleiane, said in parliament this Thursday (October 28) that the increase in the price of petroleum products last week was still below what the calculation rules foresee.

The price of gasoline “could be 75 [meticais per litre]” instead of 69, if the law was strictly applied, Adriano Maleiane said.

The increase wasn’t bigger because it was necessary “to do things gradually until we are back on the formula and operating as agreed” between the government and gas stations, Maleiane said.

The calculation rule takes into account the price of a barrel of crude and the exchange rate, providing for updates whenever there are variations of more than 3%.

However, there have been no adjustments for a year because of the damage caused by the pandemic to the economy: “We didn’t think we should increase any more” the cost of living, Maleiane explained. But eventually, “there was no longer any way to hold to this, or else we would run the risk of running out of fuel and everything would be at a standstill”, he said. “So, it was necessary to review prices and even so, care was taken to reflect on it 100% of what the formula says,” he reiterated, without clarifying the direction of future updates.

Transport allowance

On Monday, Minister Tonela justified the price hike with the need to avoid a collapse in the sector, taking into account that some gas stations were having to borrow to withstand the damage caused by the lack of adjustment of retail price.

In Mozambique, all fuel is imported, at an average cost of US$850 million per year, Maleiane explained. Taking into account that the country annually exports US$1.3 billion’s-worth of traditional products (excluding minerals and metals), “66% of [traditional] exports go to buying fuel”.

Should consumers expect more increases?

In response to concerns raised by MPs about the impact on the cost of living, Maleiane replied that the government was subsidising the transport sector, instead of subsidising the petrol stations (as it did until 2015). Support reaches transport users, instead of benefiting all those who fill up their tanks, some of whom might need no support.

On the other hand, the principle is to strengthen the private and family sector of the economy (for example, in agriculture) in order to better prepare themto face external shocks.

Last week, Mozambique’s Energy Regulatory Authority (ARENE) announced a rise in oil product prices in the country between 7% and 22%, reflecting the rise in the price of a barrel of crude.

Matola LNG import terminal on track for 2024 gas supply

  • Final investment decision is expected mid-2022, depending on the level of off-take secured at that stage.

The front-end engineering design (FEED) for the Beluluane Gas Company (BGC) liquified natural gas (LNG) import terminal project – being developed by Southern African energy group Gigajoule, French energy multinational TotalEnergies, and Mozambican natural gas distributor Matola Gas Company (MGC) – has been completed, adding another key milestone to the project. Mozambique’s State-owned gas company, ENH, a shareholder in both MGC and Rompco (the gas pipeline that runs from Mozambique to the industrial heartland of South Africa) has a share in the project.

The project will meet the growing energy demand in both Mozambique and South Africa by utilising MGC’s existing gas pipeline network that will be upgraded to increase its capacity to supply the full capacity of Rompco. Natural gas will be available to industries and power generation projects.

Gigajoule CEO Jurie Swart explains that the Government of Mozambique awarded the LNG import concession to BGC and approved the construction of a new, 28-inch pipeline linking the terminal to the existing MGC transmission network two years ago, after many years of prefeasibility studies. The concession includes the operation of a permanently moored floating storage regasification unit (FSRU), marine infrastructure, and a new high-pressure gas pipeline.

The project is critical for energy security in the region. There is insufficient natural gas to meet the current demand for market growth and the power generation needs in Southern Africa, which is set to worsen as output from the Pande and Temane gas fields start to decline within the next three to five years. This shortage is exacerbated by the urgent need to transition away from coal as a fuel source and to complement the volatility of renewables.

The gas infrastructure will connect the FSRU to a new 2 000 MW gas-fired power plant to be located in Matola, Mozambique, which is well situated on the Southern African grid and able to supply industries with cleaner, dispatchable power at a market competitive tariff.

The project includes an onshore LNG Truck Loading Facility (TLF) capable of supplying customers by road transport who are not situated close to the pipeline distribution network. Preliminary studies indicate that the TLF can compete with alternative fuels for gas transported up to 1 000 km from Matola.

“The TLF will enable industries and independent power producers to obtain natural gas, even in areas not near the natural gas infrastructure. This becomes all the more important since the announcement of the 100 MW Electricity Regulation Act amendment earlier this year,” notes Swart.

The project is located next to the existing MGC infrastructure and is only 90 km away from the Rompco pipeline. “This proximity to the existing gas infrastructure saves building a new supply line to Gauteng, drastically reducing transport costs to gas users,” he says.

“We are already signing up customers for the BGC project, which is now further advanced than what has been previously announced. The project could deliver gas by 2024; however, this is dependent on the commitment by the market,” he emphasizes.

Accompanying Renewables

As proposed in the Integrated Resource Plan 2019, by 2030 the South African grid capacity could comprise 33% solar photovoltaic and wind power plants. However, capacity should not be confused with actual electron flow, and renewable power plants, even when coupled with battery storage, are not completely reliable.

“Although the BGC partners are supporters of an energy transition and decarbonisation – which is non-negotiable – the sun does not always shine and the wind does not always blow. Thus, gas-fired power plants are the most cost-effective alternative to balance the variability of renewables and to maintain a constant, dispatchable power supply to the grid. We cannot throw the baby out with the bathwater and forget the pressing need to create good quality industrial jobs in our region and to get our economies moving,” says Swart.

He adds that natural gas as fuel for power generation is also considered to be much cleaner than coal since natural gas combustion produces zero particulate emissions, zero sulphur dioxide, and 60% less carbon dioxide.

While natural gas is not a completely green power source, it is the cleaner option for supporting the development of renewable energy and transitioning away from coal dependence. What is left of the Pande/Temane fields will not provide for this transition.

“Final investment decision is expected mid-2022, depending on the level of off-take secured at that stage. The FEED has now been completed and approved; final environmental reports compiled; and all development processes, licenses, and approvals are on track, while commercial engagements with the market have already kicked off with first commitments signed,” remarks Swart.

Finally, he stresses that there has been no impact on the project as a result of the unrest in the north of Mozambique, explaining that the BGC terminal will be supplied from TotalEnergies’ global LNG portfolio, meaning that there will be no supply challenges once the LNG terminal is online.

  • Originally published in Creamer Media’s Engineering News & Mining Weekly at”

Mozambique: Government committed to produce zero carbon natural gas

Mozambique’s Minister of Mineral Resources and Energy, Max Tonela, this Friday reiterated the country’s commitment to exporting carbon-free natural gas, using technologies which curb pollutant emissions by oil companies.

“The government has decided to embark on a gas decarbonisation process. Although we have a gas that already has a small emission content, we are prioritising the use of pre-existing decarbonisation technologies,” Minister Tonela said.

Speaking to journalists about the future of fossil energy in the face of growing global concern about climate change, the minister noted that the oil industry had developed technologies to remove carbon from gas and return the pollutant to its source, with a view to exporting a clean product.

Max Tonela said that Mozambican natural gas has little “polluting content”, and will be decisive in deactivating coal-fired power stations in southern Africa and elsewhere, in the context of reducing carbon dioxide emissions.

“We are going to see an increase in gas consumption, as it is the least polluting among fossil fuels, and we are also going to see an accelerated increase in renewable energies, which are still an intermittent energy source,” Minister Tonela said.

Mozambique, with its huge gas deposits, wants to be an active player in decarbonisation, using the resource for the economic development of the country, of southern Africa and other countries, he added.

Source: Club of mozambique

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