Mozambique, Tanzania join forces to explore hydrocarbons

Mozambique, Tanzania join forces to explore hydrocarbons

Recent promising resource discoveries in Mozambique and Tanzania bode well for Africa’s future. Exploration is being pursued with renewed zeal, and the continent is attracting the attention of the world’s energy companies.

Mozambique’s President, Filipe Nyusi, stated that the two countries are currently focused on exploiting hydrocarbons, which are the building blocks of vital energy sources such as coal and gas.

The two countries signed the agreements during Tanzanian President Samia Suluhu Hassan’s four-day official visit to Mozambique.

President Filipe Nyusi indicated that it is necessary to take advantage of the countries’ proximity, particularly when negotiating contracts for hydrocarbon exploitation.

Mozambique will be the first of the two to export liquefied natural gas via the Coral Sul offshore project in Area 4 of the Rovuma Basin.

Tanzania’s President Samia Suluhu Hassan welcomed the preliminary agreement, saying “We have reached a good stage of discussions about the LNG project, but much work is still waiting for us to talk and make it competitive.”

“We have never reached this stage of natural gas development in the history of our country,” said Energy Minister January Makamba during the signing ceremony in the capital Dodoma.

According to data from the Observatory of Economic Complexity (OEC), a global data visualisation tool for international trade, Tanzania exported US$114 in Crude Petroleum in 2020, ranking it 126th in the world. Crude Petroleum was its 863rd most exported product in the same year. The country’s main destination for crude petroleum exports is the United Arab Emirates.

Tanzania had a positive net crude petroleum trade balance with South Africa in 2020. It exported refined petroleum worth $36 million. Tanzania’s main export destinations for refined petroleum are Zambia, Uganda, Kenya, the Democratic Republic of the Congo, and Burundi.

Meanwhile, it has also signed a framework agreement with Equinor of Norway and Shell of the United Kingdom, bringing them one step closer to starting construction on a $30 billion project to export liquefied natural gas (LNG).

The agreement calls for a final investment decision by 2025 and the start of operations at a liquefied natural gas plant in Lindi, Tanzania’s southernmost coastal town, by 2029-2030.

Source: Energy Ghana

 

ENERGY GHANA MAGAZINE

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