Mozambique’s LNG sector to ensure safe and sustainable operations

Africa oil and power MozambiqueMozambique’s liquified natural gas (LNG) industry is set to ensure safe and sustainable operations through the implementation of standardised security regulations and enhanced community empowerment

With substantial offshore gas discoveries equating to more than 100 tcf, Mozambique has seen an influx in foreign investment aimed at driving LNG developments in-country. Despite major energy and infrastructure projects spurring job creation and a rise in local activity, the risk of the “resource curse” – in which resource-rich countries fail to fully benefit from their resource wealth due to immediate expropriation of resources and lack of reinvestment in the economy – presents a major challenge to both local communities and project developers.

To safeguard LNG operations and ensure sustainable project development, oil and gas players must join forces with local government to co-implement standardised security regulations and foster community cooperation that showcases tangible benefits and prioritizes local empowerment.

Standardised security regulations

In recent months, there has been a proliferation of security threats to Mozambique’s LNG industry with the rise in militant Islamic group attacks in the Cabo Delgado region – home to the country’s large-scale LNG developments. To mitigate the threat to its operations, French major Total even withdrew staff from its LNG site in January.

According to C Derek Campbell, CEO of Energy and Natural Resources Security Inc, a primary regulatory and operational challenge in Africa is the lack of a consistent security framework that guides owners and operators of critical energy infrastructure on how to ensure resiliency and continuity of assets and operations. Through the implementation and execution of security-specific regulation, Mozambique can establish a protected business environment for stakeholders and stimulate sectoral growth. Additionally, the increase in physical security threats has brought attention to the benefits of government collaboration with LNG developers. In a bid to address rising attacks, Total signed a MoU with the Government of Mozambique in August 2020, which saw the in the establishment of a joint taskforce to ensure the security of LNG project activities. This form of collaboration demonstrates the advantages of security cooperation and has the potential to increase safety on-site.

Community cooperation and empowerment

In addition to institutionalising a security framework, dealing with security risks should go beyond established risk management protocols. One of the primary drivers of community unrest and retaliation concerns the lack of socioeconomic development directed towards the local population. To prevent this trend and ensure long-term, sustainable development, LNG projects have a critical role to play in establishing community cooperation through mutual beneficiation.

The sustainability of LNG project developments can often be determined by community support, achieved through community empowerment and active participation. As mentioned, increases in physical security threats and vandalism can often be attributed to poverty alleviation, socioeconomic development and higher standards of living not being realised, despite significant energy potential. Therefore, by prioritising local content and capacity building through the training of and outreach and skills transfer to the local community, LNG projects can not only safeguard operations, but also ensure long-term success of projects.

Mozambique’s ongoing security threats can be addressed through community participation and cooperation, as well as reinforced through security regulation and government support. In this way, LNG projects can not only ensure the safe continuity of operations, but also facilitate increased investment in the country and long-term industry success. The success of the country lies not only in the success of its energy industry, but in the energy industry’s ability to translate LNG revenues into tangible socioeconomic benefits.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?