South Africa to Use Mozambique Gas to Fuel Industrialisation

    Natural Gas flow test, Mozambique

    South Africa is already planning to use Mozambican gas as the basis of plastics, fertilizer and ceramics industries, according to Engineering News. In a report last year titled, ‘Gas for development or just for money?’, it was argued that gas would be an excellent basis for industrialization in Mozambique, producing fertilizer, chemicals and plastics. This could create thousands of jobs in related industries. But there was no interest. Mozambique has opted for quick returns by selling the gas as Liquefied Natural Gas (LNG) or through the Chipande pipeline to South Africa – yet again simply selling raw materials without value added.

    The South African Department of Trade and Industry (DTI) has devised a plan for gas industrialisation intended to grow the economy and create more jobs, Engineering News reports. The plan is to first rely on imports of LNG (probably from Mozambique) to kick start the industrial development, with hopes of large-scale imports of gas once infrastructure was more developed.