Mozambique needs US$50 billion to develop natural gas industry

8 February 2012

Cape Town, South Africa , 8 Feb – Mozambique needs US$50 billion to develop its natural gas industry, the country’s Mining Resources Minister, Esperança Bias said in Cape Town Tuesday.

UK company Cove Energy and US company Anadarko Petroleum said in January they had discovered 237 metres of natural gas at the Lagosta well, which provided an estimate that the basin may contain between 15 and 30 trillion cubic feet of natural gas, which would be enough to justify production of liquid natural gas to supply Asian markets.

During the Mining Indaba international conference the minister said that, “following these and other discoveries, it is our wish for companies that are now prospecting to build natural gas processing factories in Mozambique.”

Cited by financial news agency Bloomberg, Bias said that the Mozambican government currently had no plans to increase tax on mining and added that, “before we did that we would always talk to the companies involved.” (macauhub)