Mozambique’s LNG Energy Sector: A Historical and Cultural Perspective
Lesley Wamere
Sustainable Energy | Energy Security | Design Strategy | Chemical Engineering | Data Science
“You know, they straightened out the Mississippi River in places to make room for houses and liveable acreage. Occasionally the river floods these places. ‘Floods’ is the word they use, but in fact it is not flooding; it is remembering. Remembering where it used to be. All water has a perfect memory and is forever trying to get back to where it was.” Nobel Laureate and Pulitzer award author, Toni Morrison, wrote this in her 1995 essay, “The Site of Memory”. Introspection and historical interrelation are alluded to.
Located on the southeastern coast of Africa, Mozambique, with a population of 34.9 million is at the cusp of shipping routes critical to global commerce and military: Strait of Gibraltar, Suez Canal, Red Sea, Bab al-Mandab strait, Gulf of Aden and Cape of Good Hope. With Germany in recession and the Nord Stream network of natural gas pipelines destroyed amidst the ongoing Russia- Ukraine war, natural gas-rich Mozambique holds significant geostrategic importance, not just within the African continent, but also for Europe.
The discovery of substantial liquefied natural gas (LNG) reserves has positioned Mozambique, with its reduced emphasis on oil, prominently on the global energy stage. As of July 2022, Mozambique's electrification rate stood at 40%, with grid electricity primarily available in urban areas. 17.5 million Mozambicans lack access to electricity.
The government has set an ambitious goal to electrify all households by 2030. It must overcome underdeveloped transmission and distribution infrastructure, insufficient financing, red tape and consumer behaviour. In leveraging its natural gas reserves, Mozambique has a window of opportunity for economic growth and development, despite the challenges it faces.
The Rovuma Basin, located off Mozambique's northern coast near the Tanzanian border, holds an estimated 100 trillion cubic feet (Tcf) of natural gas (expected to double with further prospection). This has attracted significant investments in LNG projects from key stakeholders.
In Cabo Delgado province in the north, where major LNG projects are located, insurgency by the militant group Ahlu Sunnah Wa-Jamo (ASWJ), locally known as "al-Shabab", has been ongoing since 2017, leading to cycles of death, fear, hopelessness, poverty and disenfranchisement. ASWJ's grievances reportedly include marginalization and seeking control of the region's natural gas and minerals.
Key Natural Gas Projects:
Addressing insurgency issues through inclusive education, capacity building and economic development linked to LNG projects offers a path forward in the context of the country’s rich cultural and historical fabric.
From the 7th to the 11th centuries, the Swahili Coast was a hub of maritime trade networks merchandising in gold, slaves and spices. The Swahili port towns developed distinct cultures influenced by African, Arab, Persian and Indian traders. Artifacts such as Chinese porcelain are evidence of early commerce and cultural intermingling with China during the Ming Dynasty (1405-1433).
The influence of the Swahili culture extended to Cabo Delgado, where the capital, Pemba, became an important trade centre. This region's interconnectedness with global trade routes laid the groundwork for the integration of the contemporary global energy market.
Swahili is a Bantu language with Arabic notes. Swahili iron ore works, poetry, music, fashion, architecture, and cuisine manifest in Eastern African cultures. Swahili proverbs enshrine the ethos of the region:
Mozambique’s Makuwa people are renowned for elaborate ebony family tree carvings,and the Makonde for wood carvings and intricate masks. The Chopi dance, the Mapiko initiation dance, Gule Wamkulu dance of the Chewa people and the Tufo women rope skipping dance are part of the country’s cultural diplomacy.
Sofala, a 10th century medieval port, became part of the Swahili Kilwa Sultanate in the 1180s. The socio-political structure of the Swahili centred around city-states. Swahili women at the helm of leadership included Queen Mwana Mkisi, founder of Mombasa.
Sofala then became the primary port of the Mwenemutapa Kingdom (1430–1760), an empire of the Shona people mainly in Zimbabwe. Internal discord posed the greatest threat. Mwenemutapa maintained autonomy and the Swahili paid a levy on trade and for residence. The empire traded with India, while the Portuguese acted solely as conveyors of goods between the two entities.
Mwenemutapa emerged from Great Zimbabwe (1220–1450), renowned for gold trade. Portuguese historian Jo?o de Barros documented Great Zimbabwe’s medieval city utilizing advanced stone-building techniques without mortar; its impressive remains still stand.
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Shaka Zulu, known for his military strategy and military technology, was the uncle of the Gaza Empire (1824–1895) leader in southern Mozambique.
Mozambique had embraced communism with socialist ideals, but after the civil war in the 90s, shifted to democracy.
Mozambique’s policy enhances local use of indigenous gas to foster economic and industrial growth. Its energy strategy is to increase clean energy capacity, onboard green industrialisation through integrated projects around industrial corridors such as the Nacala corridor, increase universal energy access programmes by 2030 and promote e-mobility.
Strategic Plans and Policies:
Integrated Power Sector Master Plan: to increase installed capacity to 6,001 MW by 2030.
The country is expected to reap the full benefits of the LNG projects in a decade or two, which transfers the risk to Mozambique under present conditions. Without its own LNG value chain, Mozambique is losing out on major economic benefits. There is competition from more established entities for natural gas. Pande and Temane gas fields which have been delivering gas to South African petrochemical company, Sasol, since 2004 via pipeline are seeing a bearish trend.
Developing cross-border resources bolsters energy security. Mozambique and Tanzania share natural gas reserves and are developing a Joint Development Agreement. The Cahora Bassa Dam in Mozambique on the Zambezi River that is shared with Zambia, Angola, Namibia, Botswana and Zimbabwe supplies electricity through the Southern African Power Pool (SAPP) to South Africa which suffers load shedding. Angola, a fellow Lusophone country and not a member of OPEC like Mozambique, has a longer history in the oil and gas industry. Strengthening historical ties, sharing knowledge, and fostering strategic partnerships mutually benefits both countries, especially considering their strategic positions linking the Indian Ocean and the Atlantic.
Mozambique's government is perceived as committed to anti-corruption, international cooperation and adopting best business practices, including EITI validation, for long-term solutions.
Managing expectations of the local communities through advocacy and dialogue, as well as tangible benefits from the projects are crucial. Leveraging historical trade relations to reach final investment decision (FID) in developing infrastructure and trade partnerships is vital.
Renewable Energy Projects Include:
Mozambique plans to execute its $80 billion energy transition plan with its renewable resources to increase hydropower capacity by 14,000 MW, between 2030 and 2040, and to start a green hydrogen industry.
Its renewable energy projects include:
Mozambique stands at a pivotal moment in its history. The development of its LNG sector, underpinned by its rich heritage, presents a unique opportunity for economic transformation. This requires navigating significant challenges, including economic risks, and internal and regional conflicts. The global transition to renewable energy is an enabler as LNG is a transition fuel and Mozambique mines tantalum which is used in electric vehicles and appliances.
By balancing its rich cultural past, strategic economic planning and fiscal policy, Mozambique can chart a course toward a prosperous future for its citizens. The critique, “Papa, Snake and I” by Luís Bernardo Honwana allegorically embodies this.