* Mozambique, Tanzania expect first gas by end of decade
* Critics say basket of projects needed, not just LNG
By Agnieszka Flak
JOHANNESBURG, Sept 19 (Reuters) – Bad timing may defeat East
Africa’s plan to become a major liquefied natural gas exporter
if plants are delayed and the region is overtaken by a global
gas glut.
A singleminded focus on LNG may also see Tanzania and
Mozambique compromise on developing the region through gas-fired
power stations and plants converting gas to fuel.
The region’s geology has already delivered a jackpot in
discoveries of 150 trillion cubic feet – enough to supply
Germany, Britain, France and Italy for fifteen years – and
consortia busy scouting wells claim there may be potential to
double that.
The size of the discoveries, their location en route to Asia
and buyers’ desire to diversify away from big suppliers Qatar
and Australia have made East Africa an attractive prospect for
LNG. But the clock is ticking.
“We don’t know what the market is going to be post 2020. We
need to get there before then,” John Peffer, managing director
of Anadarko Petroleum Mozambique told an energy
conference in Maputo. “We need to progress quickly.”
Research firm Wood Mackenzie estimates global supply of LNG
will reach 472 million tonnes by 2020, against demand of 369
million tonnes. The expected oversupply has already fuelled a
global race for customers in growing markets in Asia.
Continued…
