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A collaboration between South Africa and Mozambique could create huge opportunities in the Oil and Gas industry. Through this collaboration, they could become one of the worlds biggest players in the oil and gas industry. Beyond this, millions of direct and indirect jobs would be created in both countries, driving up job creation and further supporting the economy.

Great potential in SA-Mozambique Oil and Gas collaboration

The Benefits:

Niall Kramer, CEO of the South African Oil and Gas Alliance (SAOGA), argues that cross-border collaboration is one of the best means of invigorating industrialisation in order to fuel job creation and thereby drive economic growth. Kramer believes that South Africa should focus on becoming a gas-centric economy, which would allow South Africa and Mozambique to partner and become a strong global gas and services hub. This shift to a gas focus will greatly support job creation, which is essential for economic progression. SAOGA statistics show that gas creates 622, 000 direct jobs compared to coal’s 154, 000, and 2.2m indirect jobs versus coal’s 400, 000. This shift would also allow for infrastructure opportunities, skills upgrades locally and nationally, local supplier development fueling SME growth, more connections to power, a workforce upskilled for the ‘jobs of tomorrow’ with more artisans and technicians, and a pivot from mining skills to oil and gas capabilities.

Kramer says, “South Africa first needs to focus on LNG imports, whilst exploring its drilling possibilities in parallel. In not doing so, we’re missing out on catalytic economic and job growth opportunities which will be mainly felt in the downstream economy. ENI in Mozambique has reached FDI for USD$7-8 million on Coral FLNG. That’s the kind of scale we want. It’s happy hour for gas globally – maybe until 2023. Let’s use that gap to begin imports.”

South Africa’s minister of Energy, Jeff Radebe, has visited Mozambique to discuss opportunities in building a Rovuma gas pipeline to Maputo between north and south of Mozambique, the gas being crucial for the supply of three regasification terminals that South Africa aims to build. South Africa’s desire to strengthen collaboration with Mozambique, Radebe says, will aim to explore more natural resources in the region, as Tanzania, Mozambique, Zimbabwe, Botswana and South Africa hold large gas reserves, with South Africa exploring more potential for shale gas.

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