Mozambique Government Turns to Natural Gas After End of Coal Boom

- July 29th, 2015

Mining Weekly reported that Mozambique’s coal boom is officially over and now the government is looking at offshore gas, analysts said at a coal conference in Maputo.

Mining Weekly reported that Mozambique’s coal boom is officially over and now the government is looking at offshore gas, analysts said at a coal conference in Maputo.
As quoted in the market news:

Just a few years ago, billions of dollars poured into Mozambique, one of the world’s poorest nations, in a twin scramble for inland coal and offshore gas. The gas rush is intact, but the coal boom has come apart at the seams, hobbled by low prices, overblown expectations, and a rail and port network that remains woefully inadequate.
“At this stage Mozambique is not a coal story any more. It’s very expensive, very uncompetitive and they need a lot of added capacity,” said Thea Fourie, Africa economist at His, a financial and risk consultancy. “It’s really a liquefied natural gas (LNG) story now and I think the government is shifting its focus from coal to LNG,” she told Reuters on the sidelines of a Mozambique coal conference organised by Informa.
In the coal region of northern Tete province, there has been a flurry of exploration permits issued and regular flights now connect this rural backwater to Johannesburg. But real action is limited.

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