An environmental impact assessment (EIA) study carried out by Consultec concluded that the second floating liquefied natural gas (FLNG) platform proposed by the Italian company Eni for Mozambique would have a minimal negative impact on the environment. The new platform, called Coral Norte FLNG, is planned to be located ten kilometers north of Coral Sul, currently in operation in the Rovuma Basin.

Eni expects to make a final investment decision on its second FLNG in Mozambique, which will have a production capacity of 3.5 million tons per year. The report identified several potential negative impacts, such as harmful emissions, noise pollution and oil spills, but considered most of these impacts to be of low or very low significance prior to the implementation of mitigation measures and best practices.

One of the measures proposed to reduce the impact of bright lights at night was to keep birds possibly disoriented by the lights in dark containers before they were released the next day.

The new FLNG project, which will include six subsea wells, is scheduled to start operating in 2027. The draft EIA will be released for public comment a month before any new information is gathered for the final report, which will be analyzed by government authorities.

The debate on local content has been frequent in the Mozambican private sector, especially as companies seek to take advantage of the opportunities offered by the major projects in the north of the country. Seeking clarification on the subject, representatives of the Confederation of Economic Associations (CTA) met in Maputo with the Minister of Natural Resources and Energy, Carlos Zacarias.

During the meeting, they discussed issues such as valuing Local Content in the oil and gas value chain, the high cost of financing in the extractive industry, the revision of the decree-law to balance the sector’s competitiveness and the management of procurement contracts in Local Content.

Minister Zacarias assured that the government is working together with those responsible for major projects to define the minimum investment amounts to be allocated to the national business community. He explained that, although the decree does not perfectly define the amount or percentage to be allocated to Mozambican companies, the process is underway and will soon be resumed with the concessionaires.

Regarding the procurement process, Zacarias said that work is being done with the National Petroleum Institute (INP) to ensure significant impacts. CTA has proposed to the INP and the Local Content Commission that they draw up a list of goods and services that the Mozambican private sector can compete to supply.

The accessibility of Liquefied Petroleum Gas (LPG) in residential areas of Mozambique was the main focus of the speech by the president of Galp Mozambique, Paulo Varela, at the LPG Expo, held in Maputo on the 17th and 18th. Varela emphasized that making LPG available close to inhabited areas remains the main obstacle in the supply of this fuel in the country.

During the event, which addressed investments in infrastructure in Africa, the executive highlighted Galp ‘s active role in the fuel market and its expansive ambitions. “In addition to Mozambique, we are investing in countries such as Namibia, Angola, Guinea-Bissau and Cape Verde. Demand for LPG should grow with supply, with investments focused on regions such as Nampula, increasing proximity to our customers,” said Paulo Varela.

Varela acknowledged the challenges facing the industry, stressing the need for a strategy that combines subsidizing LPG for the most vulnerable segments with a pricing policy that ensures investment recovery.

The president of Galp Moçambique also highlighted the importance of technical issues, such as the control of LPG cylinders and ensuring that each company operates with its own model and valve, increasing safety and encouraging more investment in infrastructure.

“It is essential to expand the LPG reception and storage infrastructure in the Northern Zone to make the product more accessible in regions that are currently underserved. The private sector has been the main driver of these initiatives, although the government’s actions also contribute to facilitating access for the most disadvantaged population,” said Varela.
The head of Galp Moçambique concluded by emphasizing the population growth in Mozambique and Africa as an opportunity for expansion for the LPG sector, but recalled that overcoming the existing challenges is essential to capitalize on this trend.

PetroSA plans to increase gas imports from Mozambique expects the first gas flows from an agreement with Empresa Nacional de Hidrocarbonetos (ENH) to arrive later this year, aiming to bolster supplies ahead of possible shortages, according to Reuters.

With a gas marketing license granted by regulators in March, PetroSA moved quickly to secure an initial deal for 2 petajoules of gas per year (PJ/a), with the possibility of increasing to 200 petajoules eventually. This amount will be enough to supply dozens of industrial gas users, who currently rely mainly on the South African petrochemical company Sasol, which supplies around 190 PJ/a.

Sasol has warned customers that it will significantly restrict supplies within two years, as its gas fields in Mozambique run out.

PetroSA intends to form a joint venture (JV) with ENH to attract potential gas customers in South Africa and replicate the model in Mossel Bay to market the gas from the offshore fields discovered by TotalEnergies, opening a new tab for the Cape Town market.

“In Mossel Bay, we will potentially consider two different JVs, one with TotalEnergies for Brulpadda (field) and another for the Block 9 development, but the main entity that will market gas for the group is PetroSA Gas Trading,” explained Sesakho Magadla, the company’s chief operating officer.

ENH’s gas sales agreement involves importing the product through ROMPCO’s pipeline, which connects the Pande and Temane fields to South Africa, before supplying users through Sasol’s pipeline network in the north of the country.

PetroSA is currently negotiating two gas transportation agreements with Sasol and ROMPCO, a gas pipeline company, which run from Mozambique to Sasol’s petrochemical complex in Secunda, South Africa, where it operates the world’s largest coal-to-liquids plant.

Oil prices are falling as investors wait to see if Israel will retaliate to Iran’s attack. West Texas Intermediate (WTI), traded in New York, fell 0.52% to 84.91 dollars a barrel, while North Sea Brent, the benchmark for European imports, fell 0.4% to 89.66 dollars a barrel.

Israel has said that it will respond to Tehran’s attack, despite calls from the West and Middle Eastern countries for restraint, but has not released any details about the type of retaliation that might be involved.

“Tensions are expected to remain contained, avoiding a wider conflict that could cause shortfalls in oil supplies,” said Han Zhong Liang, an analyst at Standard Chartered, speaking to Bloomberg.