Mozambique's gas potential crucial for Africa's economy, AEC says
Mozambique stands out as a key player in natural gas production and plays a crucial role in Africa鈥檚 agenda to expand electricity access and clean cooking solutions, according to NJ Ayuk, Executive Chairman of the African Energy Chamber.
Ayuk highlighted key projects, market trends and policies accelerating Mozambique鈥檚 energy sector and position as a global energy hub during an interview at the Invest in African Energy: Mozambique Roundtable last week.
鈥淣o other country in Sub-Saharan Africa has as much untapped and unexplored gas as Mozambique. We are encouraging the government, the IOCs and investors to ensure every drop of hydrocarbons is produced to drive agricultural growth, strengthen energy security and enhance socio-economic development,鈥 Ayuk stated.
He mentioned ExxonMobil鈥檚 $25 billion investment in the Rovuma LNG initiative, Eni鈥檚 Coral Sul expansion with the Coral North project and TotalEnergies鈥 ongoing efforts in the multi-billion-dollar Mozambique LNG project, as key projects driving Mozambique鈥檚 energy expansion.
鈥淭hese developments, coupled with gas-to-power and petrochemical projects, signal Mozambique鈥檚 readiness to attract new investors and further integrate into the global energy market,鈥 stated Ayuk.
While renewables contribute to diversifying the energy mix, the intermittency nature of wind and sun energy makes gas a more reliable energy resource for resilient baseload power, according to Ayuk.
He also emphasized Mozambique鈥檚 ability to produce urea and ammonia from its gas reserves, bolstering food security and reducing Africa鈥檚 dependence on external markets like Ukraine.
Ayuk said the energy sector could serve as a platform to empower local communities, females and the youth as active industry participants not mere bystanders.
Expanding on local content development, Ayuk praised Mozambique鈥檚 commitment to utilizing its gas resources for domestic needs. He recognized the country鈥檚 gas-to-power strategy and the inclusion of SMEs within the energy value chain.
He encouraged the government to streamline regulations, eliminate bureaucratic bottlenecks and introduce new licensing rounds to unlock the market鈥檚 full potential. Ayuk also underscored the importance of collaboration between Mozambican stakeholders and other African nations to position the continent as a competitive and attractive investment destination.