Mozambique 17 March 17: A promising trip to Japan

Good afternoon. President Nyusi is back from Japan with a series of promises - or rather indications - of assistance in various areas, from the fuel import crisis to urban transport in Maputo and agriculture in Nampula. How many of them will in fact bear fruit, however, remains to be seen.

SEE: Analysis: Will Nyusi’s ‘economic diplomacy’ in Japan deliver on its promises?

Curiously, no public mention was made of Mitsui’s planned investment in Vale’s coal mining and export project. However, Vale said this week that the equity transaction is almost done - although a multi-billion dollar financing package is still some way off.

SEE: Vale says Mozambique stake sale to Mitsui will close this month

Perhaps the most important aspect of Nyusi’s trip to Japan were the efforts to convince Japanese buyers to commit to buy gas from Anadarko’s Rovuma Basin LNG project - a prerequisite for a final investment decision. State oil company ENH is already preparing, however, to refinance its participation in that project and Eni’s Area 4 once construction gets underway.

SEE: Mozambique oil company seeks advisors to refinance LNG project stakes

ENH is also looking at how to finance its participation in Sasol’s PSA project, where it has yet to take a stake. The national oil company has the right to up to 30%, but it is a question of being able to finance the required investment.

SEE: ENH to take up to 30% stake in Sasol’s latest Mozambique project

The one firm commitment to come out of the Japan trip this week was Sumitomo’s agreement to expand the existing gas-fired power plant at Temane. The company is apparently not in a rush to build a coal-fired plant in Tete, as it reportedly agreed to do last year. However, Indian coal consortium ICVL is trying to find a contractor to build a power plant on its concession there.

SEE: ICVL tenders for Mozambique coal power plant – for a fourth time

Have a great weekend.

RECENT POSTS

• ICVL tenders for Mozambique coal power plant – for a fourth time

• Analysis: Will Nyusi’s ‘economic diplomacy’ in Japan deliver on its promises?

• ENH to take up to 30% stake in Sasol’s latest Mozambique project

• Mozambique oil company seeks advisors to refinance LNG project stakes

• Vale says Mozambique stake sale to Mitsui will close this month