Portugal’s Galp believes Mozambique will lead world gas production

12 June 2018

“The next decade will be the decade of Mozambique,” in the world’s natural gas market, a country where Portuguese oil company Galp has 10% of the Coral Sul project in the province of Cabo Delgado, Galp Chief Executive Carlos Gomes da Silva said in an interview with the Financial Times.

Gomes da Silva believes that Mozambique could meet the demand that is expected in the international gas market and that will cannot be met by the current producers.

Galp’s chief executive, however, admitted to the Financial Times that it would be necessary to prevent the cost of producing gas from spiking, as was the case with similar projects in Australia.

“We are working to optimise and see if we can make the project even more competitive,” he said.

The consortium led by Eni, which includes Portuguese oil company Galp, in addition to Korea Gas and Mozambican company Empresa Nacional de Hidrocarbonetos (ENH), will invest US$8 billion.

The consortium’s priority is to ensure low operating costs, rather than pursuing a timetable at any cost, and it estimates that the production of liquefied natural gas in Mozambique will start in 2022. (macauhub)