Fitch Solutions on Monday predicted that natural gas production in Mozambique will grow 26.5% annually until 2029, pushing the economy to average growth of 12.4% this decade.
“The prospects for natural gas production in sub-Saharan Africa are more positive than for oil, with production almost doubling from the current 75.6 billion cubic metres to 135 billion cubic metres in 2029; Mozambique represents the country with the highest growth margins throughout the analysis period, with an average annual growth of 26.5% between 2020 and 2029,” the analysts said.
In the report on the evolution of oil gas this decade in sub-Saharan Africa, sent to clients and to which Lusa had access, the analysts of this consultancy held by the same owners of the financial rating agency Fitch Ratings wrote that Mozambique will compete in the market with Nigeria, the largest producer of gas in the region, and the market share of the largest African economy is expected to fall between 46% and 65% by the end of this decade.
“Although Nigeria will continue to register sustained growth, most of the gas produced will come from new players like Mozambique,” analysts said, pointing to the investments that are underway in this Portuguese-language country.
“Mozambique, a key supplier to the South African market, will begin to develop its vast offshore reserves, which will increase its production from a modest 5.6 billion cubic metres to 45 billion cubic metres by 2029,” the analysts estimated.
Among the effects of production on the Mozambican economy, which analysts estimate will grow by an average of 12.4% during this decade, the automobile sector will be one of the major beneficiaries: “Our forecasting team for the automobile sector predicts that the fleet of vehicles in Mozambique will grow by 164% by 2029,” the analysts said.
Source: AIM via Club of Mozambique