South Africa urged to use seasonal advantage to secure lower LNG prices from Mozambique

South Africa urged to use seasonal advantage to secure lower LNG prices from Mozambique

South Africa is failing to fully grasp the energy and economic significance of the impending development of the enormous gas reserves discovered in northern Mozambique since 2010, Standard Bank oil and gas specialist Paul Eardley-Taylor argues.

Between 150- to 200-trillion cubic feet of gas has been found offshore the country’s northern Cabo Delgado province and exploration, production, concession contracts, with use-it-or-lose-it terms, govern the development of three separate liquefied natural gas (LNG) projects.

LNG sales contracts point to over 30-million tons per annum (Mtpa) of LNG entering production between 2023 and 2025, with a final investment decision having been made for the 3.4 Mtpa Coral floating-LNG project and with decisions expected later this year on the far larger Mozambique LNG (12.9 Mtpa) and Rovuma LNG (15.2 Mtpa) onshore projects....

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