Mozambique gets new law for gas partnerships | Fin24
 
  • Still falling

    Annual consumer price inflation has dipped to its lowest level in 9 years.

  • Sabotage at Eskom

    President Cyril Ramaphosa says sabotage contributed to power cuts earlier in the week.

  • Digital Banking

    TymeBank says it will be switching gears in a bid to triple its size by the end of 2020.

Loading...

Mozambique gets new law for gas partnerships

Dec 18 2014 10:48

Maputo - Mozambique on Wednesday published a law setting the framework for energy firms Anadarko and ENI's multi-billion dollar gas projects, as the country gears up to become a leading exporter of liquefied gas.

The law sets legal, labour and fiscal terms for the Texas-based Anardako and Italy's ENI, which plan to build liquefaction plants worth $2bn each in the offshore Rovuma Basin.

It allows them to keep revenue in banks accounts outside the country and pay expatriate employees in foreign currency.

Fatima Mimbire, an analyst from the Maputo-based Centre for Public Integrity, stated that the decree was aimed at facilitating the production of liquefied natural gas which will be exported from the country.

Anadarko and ENI have since 2011 made gas discoveries totalling 200 trillion cubic feet, raising the status of the impoverished southern African country as an emerging natural gas frontier.

The export of natural gas is not expected start before 2019, said Fabrizio Trilli, chief executive of ENI Mozambique, at the second gas summit held in Maputo early in December.

The publication of the decree came after the government in October launched the last exploration licenses cycle on 15 blocks covering 76 800 square kilometres.

Two of the concessions lie in the deep water Rovuma basin, near the Tanzanian border.

According to US Energy Information Administration, Mozambique's proven reserves leapt from 4.5 trillion cubic feet to 100 trillion cubic feet this year.

mozambique  |  gas  |  industrial
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.
 

Company Snapshot

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...