The discovery of huge natural gas reserves in Mozambique has resulted in a 43% increase of foreign direct investment since 2012. It has the potential to become the world’s fourth largest supplier of natural gas - with over 160 trillion cubic feet estimated to lie beneath its 800 thousand square kilometres. And its location on the Indian Ocean positions Mozambique as a potentially critical supplier to the Asian market.
In addition to natural gas, Mozambique has rich reserves of coal, base metals and precious stones. Its coal reserves are estimated at 3 billion tonnes - the region is expected to become one of the world’s top ten coal exporters by 2017. Experts have also praised the quality of Mozambique’s coal. Meaning that, once key infrastructure is in place, the country will be positioned to export to high demand markets like India and China.
Developing infrastructure is seen as pivotal in optimising these natural reserves - and construction is a high priority. The Ministry of Mineral Resources has been positive in licensing drilling blocks to foreign operators. The newly built infrastructure - transport links, roads, power and ports - will also promote growth in other markets, as previously remote locations become accessible. Commercial real estate and tourism are expected to be key opportunities - not just Maputo, but throughout Mozambique.
"Despite the macroeconomic challenges faced by the country, Mozambique is inundated with opportunities for those companies whom have endured the trough in the country’s business cycle" - Michael Aldridge (CEO)
Sunbird, through its local operating company, Turinvest, is seeking to unlock the country’s potential for future growth, with serviced apartments along the coastline to serve the needs of business tourism for the extractive and tourism sectors of the economy. With existing operations in Palma, and a new site opening in Pemba, the Company’s pipeline also includes sites in strategic locations including Nacala, Quelimane and Angoche, that align with future discoveries of natural gas by major multinational players such as Exxon Mobil and Rosneft.
The Company is also seeking to roll out its provision of serviced offices, to be delivered by our local operating company, ESBC.
Impact of LNG to GDP (2014-2035)
The figures illustrated reflect the impact of discoveries in Natural Gas in Area 1 and 4 on GDP between 2014 and 2035. By 2035, Area 1 is due to include up to 6 LNG Trains. If successful, Area 4 will include additional LNG trains to maximise production of LNG and thus, a greater positive impact to GDP. Additionally, there is a significant additional benefit that Mozambique can potentially derive from having gas made available for Domestic Gas Usage (DGS).