Africa MapWhen oil and gas industry investors and chief players think about energy production, East Africa is not necessarily the first region that comes to mind. However, along the continent’s eastern coast momentous discoveries seem to currently be attracting back some investor appeal, typically from the hydrocarbon community. The newest and most exciting east African development currently taking place is the Rovuma Basin; a geological region that is resourcefully rich alongside the Tanzania and Mozambique borders. It is said that the Rovuma Basin holds the potential capacity of producing up to 150 trillion cubic feet (Tcf) of gas.

Two main corporates are leading the anticipated operation namely, Anadarko and ENI and at the moment along the basin of Mozambique there are 77 Tcf to 112 Tcf of confirmed reserves. This means that this is far greater than the North Sea and Anadarko’s findings alone could potentially amount to 100 Tcf. Most predictions made by industry specialists conclude that concerning liquefied natural gas (LNG) prospects, Mozambique will most likely be ranked 2nd or 3rd world-wide. Even though Tanzania has been somewhat modest regarding their findings and discoveries, there is no doubt that the 40 Tcf of confirmed gas reserves will significantly have a transformative outcome on the nation’s economy.

If we branch out and analyse the energy demand globally, one can see that the LNG production is of such significance that this will be the path that leads both of these nations to a successful and prospect future.

With the launch and go ahead of the massive operation, the two-train LNG will be the start of this journey that will see the well-deserved rise of these 2 nations. Initially train 1 and 2 will result in high costs making the development of the projects high for capital investors. Nevertheless, the financial costs will heavily drop with higher returns as train 3 and 4 are constructed.

The lack of infrastructure as well as technical skills and knowledge, pose challenges that Mozambique and Tanzanian Governments will have to overcome as they strive towards the opportunistic development plan. In order to ensure the success of East Africa’s transition into an energy platform is successful, it is critical that the relative countries guarantee their citizens important roles in the growth and development of the promising industries; not just regulate frameworks for external investors. This is such an amazing development for the entire population of both countries. The greatest influence that will result with the implementation of the Rovuma Basin is the elimination of poverty and the aspiration of the countries.

For East Africa this will be the opportunity of a lifetime and it will not happen again.

ENI Anadarke


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