Mozambique’s natural gas reserves to attract investments of US$30 billion

24 April 2012

Discoveries of natural gas in Mozambique’s Rovuma basin, with reserves currently estimated at 70 trillion cubic feet are expected to attract investments over US$30 billion between 2013 and 2018, Standard Bank economist Simon Ashby-Rudd said recently in Maputo.

During the “Economic Briefing” meeting of the bank, which has been in Mozambique for 117 years, the economist said that the figure he mentioned would be used to process the natural gas in the basin for export, which would significantly change the value of the country’s Gross Domestic Product and its industrial structure.

Rajat Kohli, who is also an economist with the Standard Bank group and a mining and metals industry specialist, said that, “it is expected that the coal sector will substantially increase its contribution to GDP as of 2015 as production and export reach projected levels.”

Initial projections pointed to annual production of 20 million tons, but Kohli said that that in 2018 that level was expected to triple to 60 million tons, with available resources making it possible to reach production of 100 million tons per year.

Organised by Standard Bank Moçambique, the “Economic Briefing” is held once a year and is intended to provide support to businesspeople in their decision-making processes, by providing information about the outlook for the Mozambican, regional and world economies. (macauhub)