Mozambique Can Realize Full Benefits of Natural Gas Production

SEATTLE (Oil Monster): For far too long, descriptions of Mozambique have contained some variation of the following:  Mozambique one of the poorest Least Developed Countries in the world faces endemic droughts, floods and widespread poverty.

But we’re closer than ever now to changing that narrative, to being able to say: By strategically managing its vast natural gas resources, monetizing them, and harnessing them to industrialize the country and develop the private sector across the country, Mozambique is ushering in a new era of widespread economic growth and stability.

Unfortunately, not everyone agrees with this vision. A number of environmental organizations argue that the benefits of natural gas production in Mozambique are negligible and not worth the environmental costs.

Last month, African Energy Chamber CEO and Executive Chairman NJ Ayuk made a case for Mozambique developing its natural gas resources to build its economy. He criticized some environmental groups—UK-based Friends of the Earth in particular — for attempting to interfere with the UK government’s $1 billion funding commitment to Total’s Mozambique Liquified Natural Gas (LNG) Project. (Export credit agency UK Export Finance had agreed to contribute funding because of the project’s potential to transform Mozambique’s budget and create jobs in the UK.)

Shortly after Mr. Ayuk released his piece, journalist Ilham Rawoot, who works for Friends of the Earth Mozambique (Justica Ambiental) and is the coordinator of the organization’s No to Gas! campaign responded with an equally passionate opinion piece opposing his stance. She took issue with Mr. Ayuk’s commentary on environmentalists’ interference and his views on the LNG potential benefits, and she asserted that Mozambique would be better off without natural gas production or LNG projects.

I respect Ms. Rawoot’s right to express her views on African or any other matters.

I only wish that she, and others who are intent on saying “no to gas” in Mozambique, could start by making a thorough analyses on the pros and cons of Mozambique developing its vast natural gas reserves. The spillover and multiplying effects in terms of socio-economic development, from training and capacity building, employment, Government revenue, industrialization through domestic gas utilization and energy security. Natural gas production truly represents an opportunity for Mozambicans, and there are solid reasons to believe that Mozambique can take the steps necessary to reap significant benefits from the three LNG projects currently being developed here: the Total LNG project, valued at $23 billion; the ExxonMobil-led Rovuma project valued at $23.9 billion; and the $4.7 billion Coral Floating LNG project. But not only that, I’ve witnessed the positive impact of natural gas industries in other jurisdictions, from Trinidad and Tobago, Qatar, Nigeria, Australia, Norway and the United States of America. These are some of the reasons I’m confident when I say Mozambicans can shift our country’s trajectory for the better: We can transform our reality from poverty despite our resources to prosperity because of them.

Courtesy: www.africaoilandpower.com