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Key Decision-Makers from Mozambique within oil and gas, energy and transport visit Denmark

17.11.2014  11:53

The ambition of the visit is to showcase the investment potential in Mozambique within oil and gas, energy and transport and to learn about Danish competencies within the fields of oil and gas, energy and transportation, as well as to meet with the Danish companies that are specialized in these fields and, most importantly, to identify possible partnership projects for longer term collaboration, transfer of knowhow and technical assistance.

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Why Mozambique?
After almost two decades of civil war, Mozambique is rapidly emerging as one of the fastest growing economies in Africa. Economic growth is expected to average around 8 pct. over the next years. Currently deficits are declining as a proportion of gross domestic product and the country is enjoying a period of remarkable stability.

Oil and Gas
Mozambique’s upstream potential is presently within natural gas. Mozambique is estimated to have natural gas reserves of 100 trillion cubic feet, placing the country as the third largest proved natural gas reserve holder in Africa, after Nigeria and Algeria.Today, Mozambique produces a small volume of natural gas and mainly from two onshore gas fields, Pande and Temane. The majority of natural gas produced in Mozambique is exported to South Africa. Anadarko and ENI already hold significant interest in the country’s exploration permits.Although Mozambique is potentially one of the richest countries on the African continent within natural gas, many discovered gas fields remain unexploited. A suite of impressive new discoveries made in recent times suggests that the country is still far from achieving its full potential in natural gas production.

Energy
Mozambique’s power sector is expanding rapidly as international companies rush to build the infrastructure necessary to power their investments in the country. The electrification rate and quality of the electricity supply is still dismally low. As part of the Government’s strategy to reduce poverty, the energy sector has been identified as a key area of focus, with electrification programs being pushed through – the target is to produce 800 MW of electricity by 2020.Today only around 18 pct. of households have access to electricity. Strategies by which the energy sector can help to reduce poverty and promote growth include the development of domestic infrastructure, affordability of energy access across the country, and promotion and participation of the private sector in the energy sector.

Transport
A number of transport corridor projects are equally underway. The ambition is to upgrade the transport corridors of Moatize-Macuse, Beira and Nacala Corridors, thus allowing for a clearer integration of the different regions and neighboring countries, i.e. Zimbabwe and South Africa. A number of these projects will be held by foreign investors and others financed by various investment banks; among others the European Investment Bank.