Business Day: New legislation prop Mozambique’s LNG to displace Nigeria, others

Mozambique’s ambition to displace Nigeria and other LNG producers in Africa like Algeria, Egypt and Equatorial Guinea is taking shape. Mozambique’s hopes to be the world’s third largest liquefied natural gas (LNG) exporter after Australia and Qatar by the end of this decade.

The country is pushing for the passage, before year-end, of legislation governing two major projects in the Rovuma Basin. The legislation will provide the legal, governmental and contractual framework for the LNG projects in Mozambique’s offshore blocks Area 1 and Area 4 – operated by Anadarko Petroleum and Eni respectively.

Once the law is passed, Mozambique will be able to develop and produce gas with support from these international oil companies (IOC) to export LNG to energy deficient consumers, particularly in Asia.
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