Bloomberg News

Mozambique Needs $50 Billion to Grow Gas Industry, Bias Says

February 07, 2012

(Updates with minister’s comments in third paragraph.)

Feb. 7 (Bloomberg) -- Mozambique will need $50 billion in investment over the next decade to develop its natural-gas industry, Mines Minister Esperanca Bias said.

Cove Energy Plc, a U.K. explorer, and partner Anadarko Petroleum Corp. said last month they had encountered 237 meters (777 feet) of gas in their Lagosta discovery off the Mozambican coast. The results support an estimate that the basin may hold 15 trillion to 30 trillion cubic feet of gas, enough to justify production of liquefied natural gas to supply Asian markets.

“With these discoveries, our intention with the companies are to set up LNG plants in Mozambique,” Bias told reporters at the Mining Indaba conference in Cape Town today.

Mozambique doesn’t have plans at the moment to raise mining taxes and will consult the industry over possible future changes, she said.

“We are starting our mining activities,” she said. “Our fiscal regime was approved in 2007. We need to consolidate what we have and then we will see. We have less than five big companies that have started production.”

--Editors: Gordon Bell, Raj Rajendran

To contact the reporter on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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