BusinessDay: Progress on Mozambique LNG piles more pressure on Nigeria

As Mozambique inches closer to its ambition of becoming a leader in the global liquefied natural gas (LNG)industry, the East African country looks set to upending Nigeria’s share of the high-demand Asian markets as it makes inroads into the region.

Last week, Anadarko Petroleum, the primary operator of Mozambique’s Rovuma Offshore Area 1,which is estimated to hold more than 65 trillion cubic feet (Tcf) of natural gas, said it had sold twothirds of the capacity of its planned Mozambique LNG project to Asian customers and hopes to have the rest sold soon.

To develop massive LNG projects, financiers often require customers to be lined up well in advance.

Analysts believe that the Mozambique’s proximity to Asia is likely to stand it in good stead for LNG exports as it presents a veritable alternative for Asian buyers.

“East Africa, in particular Mozambique, could be a new hotspot in LNG exports due to its recent large offshore discoveries,” said British maritime classification society, Lloyd’s Register, in its ‘Global Marine Trends 2030’ report.

LNG, gas chilled to liquid form for sea transport, is a key fuel source and many Asian nations have been hungry to find steady sources. MORE

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