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National Hydrocarbons Company Admits Mozambique Could Be Alternative to Russian Gas

National Hydrocarbons Company Admits Mozambique Could Be Alternative to Russian Gas

The Mozambican state-owned National Hydrocarbons Company (ENH) admitted on Monday, July 25, the possibility of the country responding to the growing needs for gas in Europe, due to the uncertainty regarding Russian supply following the invasion of Ukraine.

“With the situation of the war in Ukraine, the European market has increased demand for gas. One of the ways to accelerate the arrival of our gas to the markets is to use a second floating platform similar to the one that is already here in Mozambique,” said ENH’s commercial executive director, Pascoal Mocumbi Júnior, quoted by the Mozambique Information Agency (AIM).

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Mocumbi Júnior said that a second floating liquefied natural gas production platform would join an identical infrastructure, which already exists in Mozambican waters, if the country had to be part of the solution to the energy deficit caused by the Russia-Ukraine war.

The source also added that the construction time for a possible second floating unit would be three years, two years less than the time it took to build the unit that has already started loading hydrocarbons, as a way to gain time and speed up gas production.

“With the quantity of gas that exists in Mozambique, the country is automatically positioned as an alternative to supply the need that exists today, and the faster we are able to place our gas in the market the greater the possibility of taking advantage of the current crisis caused by the Russia-Ukraine conflict,” he highlighted.

Last week, the outgoing European Union (EU) ambassador to Mozambique argued that natural gas from Cabo Delgado is among the alternatives in Europe’s plan to diversify energy sources in the face of constraints caused by Russia’s invasion of Ukraine.

“Mozambique’s gas, with the presence of large European multinational companies, now has an even more important and strategic value,” Sánchez-Benedito Gaspar said in an interview with Lusa in Maputo.

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According to the diplomat, with the Russian invasion of Ukraine, Europe has come to the conclusion that “it cannot trust its old partner [Russia, among the largest gas exporters in the world], which is authoritarian and uses gas as an instrument of war,” and is making efforts to secure alternative sources.

“We have adopted a new strategy in Europe, called “RePower EU,” which has several elements […] With regard to gas, which is considered a transitional energy, we are looking for alternative suppliers […] Mozambique is among the alternatives,” Sánchez-Benedito Gaspar stressed.

Although the gas from the three projects approved so far has a destination, Mozambique has proven reserves of over 180 trillion cubic feet, according to data from the Ministry of Mineral Resources and Energy.

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