Transcript Overview of the Gas Materplan - Gordon Institute of Business Science

An Overview of the
Gas Master Plan
MOZAMBIQUE GAS & OIL SEMINAR
Johannesburg, 21st August 2014
The Extractive Industry in
Mozambique
•
Mozambique is a country with vast
potential and a variety of mineral
resources including coal, natural gas,
gold, titanium, heavy sands, gemstones,
base metals, nonmetallic minerals,
among others.
•
Mozambique has huge energy resource
potential, which provides a favourable
condition for the satisfaction of not
only its domestic needs, but also that of
the Southern African region.
•
The sustainable exploitation of these
resources gradually begins to
contribute to economic and social
development of the country.
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Energy Resources Potential
Hydropwer:
– The hydropower potential
identified is possible to develop
more than 18,000 MW of capacity
and provide more than 95,000
GWh per year to the electricity
market in the country and the
region.
Coal:
–
Coal reserves are estimated at
more than 20 billion tonnes.
–
A potential for exploring CBM in
the coal exploration areas
Natural gas:
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Natural gas Potential Resources are
estimated at 277 TCF, from wich
170 TCFs have been discovered.
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Occurrences And Estimates Of
Natural Gas In Mozambique
Name of Region
Total
evaluated
(TCF)
3P
discovered
(TCF)
Not yet
discovered
(TCF)
Offshore Rovuma
North
199.4
170
75.0
Offshore Rovuma
South
36.0
0.0
36.0
Rovuma Onshore
3.1
0.0
3.1
Onshore
Maniamamba Basin
1.2
0.0
1.2
Central Region
Offshore
17.9
0.0
17.9
Onshore South and
West
5.7
3.5
2.3
Southern Region
Offshore
13.1
0.0
13.1
Total
276.5
*
173.9 *
148.1
(*) This value has been updated according to the
assessment process.
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Natural Gas Concessions
Grant
Sedimentary
Basin
Operator
Year
Country
PPA of
Pande/Temane
Mozambique
Sasol
2000
South Africa
PSA of
Pande/Temane
Mozambique
Sasol
2000
South Africa
Blocks 16 & 19
Mozambique
Sasol
2005
South Africa
Area 2 & 5
Rovuma
Statoil
2006
Norway
Sofala
Mozambique
Sasol
2006
South Africa
M-10
Mozambique
Sasol
2006
South Africa
Area 1 Offshore
Rovuma
Anadarko
2007
USA
Area 1 Onshore
Rovuma
Anadarko
2007
USA
Area 4
Rovuma
ENI
2007
Italy
Area 3 & 6
Rovuma
PETRONAS
2008
Malaysia
Buzi
Mozambique
Buzi
Hydrocarbons
2008
Indonesia
Area A
Mozambique
Sasol
2010
South Africa
Relinquished areas
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Gas Master Plan
It is an evolutionary technical plan for the development of the gas sector.
Provides a detailed roadmap for strategic decision making, policy and
institutional nature, the basis of which may be designed and implement
investments in a fully coordinated manner.
•
It's a dynamic tool to guide policy development in the gas sector in
Mozambique
•
Favors a stable and transparent regulatory regime, fiscal and financial
policies so as to promote the development of the gas sector in order
to benefit the country as a whole.
•
It’s a hierarchy Instrument of development decisions, setting priorities
in the allocation and use of natural gas.
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Value Chain Of Natural Gas
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The Need
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The existing natural resources in the country are to be used
in a sustainable manner, ie, combining economic, social and
environmental dimensions;
•
Natural resources should first meet the development needs
of Mozambique;
•
Ensure the use of gas in the domestic industry;
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Meet the requests of gas, for the development of new
projects.
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Request for Use of Natural Gas
Projects such as:
• LNG
• Power Plants
• GTL
• ammonia
• urea
• methanol
• Methanol to Gasoline
• LPG
• Processing of Tomato Paste
• Processing of Iron and Steel
Sites Proposed for Its implementation:
• Palma, Nacala, Beira, Ressano Garcia,
The Master Plan Framework
The Five-year Program of the Government defines its central objective as
the fight against poverty with a view to improve the living conditions of
the people of Mozambique, in an environment of peace, harmony and
tranquillity.
1. Institutional Framework
• The Ministry of Mineral Resources (MIREM) is the government entity
responsible for promoting the sustainable use of natural gas in Mozambique.
2. Political Framework
• In recent years, the Government of Mozambique has adopted several policy
instruments and strategies with a view to promote the development and
sustainable use of energy resources of the country.
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3. Legal Framework
• Mozambique has a legal framework to meet the challenges associated with
the sustainable use of natural gas, as described below.
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Vision
Develop natural gas resources in order to maximize the benefits to the
Mozambican society to improve the quality of life of the Mozambican people,
while minimizing the adverse social and environmental negative impacts.
Contributing at:
– Growth of institutional capacities of the public and national private
sector;
– Growth and strengthening of industry and national companies in
particular for small and medium size enterprises;
– Increasing employment across the country;
– Investment in infrastructure to support the growth of economic
activities, and
– Greater access to training and education,
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Strategic Objectives of the Master Plan
The strategic objectives, to be achieved by 2030, can be divided into two
strands:
a)
Development of gas:
• Production in the offshore Rovuma basin, supported by LNG in Palma.
• Continued exploration and eventual production of gas from other
exploration areas
• Continued exploration for gas in the onshore and offshore Inhambane
province.
• A significant contribution of natural gas to the energy supply mix.
• Development of an industrial zone in Palma, Pemba, and Nacala, based on
the availability of natural gas from production in the Rovuma basin.
• Possible fertilizer factory, thermal power plants, petrochemical industry, and
GTL based on gas from the Rovuma basin or additional development in the
Inhambane district;
• Construction of gas pipelines to support the expansion of SMEs.
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Strategic Objectives of the Master Plan
b) Development of the country on the basis of revenues from gas
production and LNG sales:
• Diversified Economy;
• Construction of large infrastructure projects, in particular, roads, ports,
railways, airports and power stations;
• Greater industrialization with the emergence of SMEs that leverage off of
mega-projects
• Increase of skilled labour. Increase of professional services (engineering,
design, accounting, etc) in Mozambique, with Mozambican
companies beginning to assume positions of leadership in mega-projects
• Mozambique as a great tourist destination, based on the combination of
its vibrant culture, wildlife, beaches, etc.
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Pillars of Master Plan
Economic and institutional issues
– Accelerate the negotiations for the development of gas in the Rovuma Basin and
export of LNG
– Develop and implement a communication plan with a view to increasing
transparency and managing the expectations
– Support the use of natural gas in national industries
– Strengthen institutional capacities in matters related to natural gas
development.
– Create national capacity to exploit, market, and develop gas resources and LNG.
Funding and fiscal affairs
– Create and maintain a good business environment
– Ensure that the share of gas for the Government is taken in-kind and in-cash
Environment and social development
– Ensure that the local communities, in particular in the areas of exploration and
production, are benefiting from natural gas-related activities
– Prevent and/or mitigate the environmental damage resulting from the
production and use of natural gas
– Strengthen the institutional capacity for the implementation of environmental
legislation
Values
In the implementation of the Gas Master Plan, the Government should be guided
by a set of values such as:
• Transparency. All decisions that will be taken, agreements to be concluded,
and all the other government rules and practices should be conducted in a
transparent manner and be designed to benefit the society in general.
• Impartiality. Under no circumstances will the Government adopt a position
which in some way will benefit only a few while doing harm to others, in
matters related to the natural gas.
• Social Justice and equity. All the actions carried out in the context of the
Master Plan implementation should promote social inclusion.
• Participation and information. The Government should promote the sincere
participation, in accordance with their capacities, of all those interested in
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issues related to the sustainable use of gas.
Guiding Principles
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Regulatory clarity in the energy sector
Sustainable use of revenue
Identification of needs and coordination of infrastructures.
Education and Training
Regional Development
Promotion of SMEs
The use of local resources such as raw materials, national
companies and hand labor prioritized national services.
• Environmental Sustainability
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Cross-cutting Issues
Investment environment
A legal and regulatory framework that promotes the development of gas
and that provides the investors with the necessary security of these
investments;
National unity, peace and stability.
The use of natural gas and the sharing of the benefits from gas
development must have a national dimension, while considering the
need to promote local development.
Environment
The Government will ensure that the exploitation of natural gas, its
processing, and its use will be conducted in a sustainable manner,
reducing to a minimum the negative impacts on both land and sea.
Gender and large groups
The Government will ensure that the Gas Master Plan contributes
toward the development of large groups, particularly children, women
and elderly, without prejudice to the development of other groups. 17
Special Considerations
The GMP includes the following aspects:
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The policy of pricing domestic gas
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Mega projects and the policy of allocation of gas
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The regulatory policy for the gas sector
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The Communication Strategy
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The Financial Management and Audit
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The Action Plan
Action Plan and Final Considerations
• To achieve the above objectives announced, the Gas Master Plan requires a clear
definition of responsibilities and activities of all governmental institutions directly or
indirectly involved in various forms of sustainable use of natural gas and its
derivatives.
• Thus, the document presents in the form of logical framework, activities,
responsibilities, indicators and deadlines that must be met for the vision of the GMP,
translated into strategic objectives, to be achieved in its fullness.
• The GMP was approved on June 24, 2014, pending its publication in the
Government Gazette. The electronic version after publication, will be available in the
MIREM or INP website (www.mirem.gov.mz and www.inp.gov.mz )
Thank you
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Política de fixação de preços do gás natural para consumo
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O preço do gás natural para consumo doméstico deve incentivar o seu
uso para o transporte, indústrias domésticas, cozinha e outras
utilizações domésticas;
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A determinação do preço doméstico do gás natural deve ser na base de
leilão, cujos termos serão estabelecidos pelo Governo;
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A realização de leilões pretende permitir que os preços do gás natural
para o consumo doméstico viabilizem a indústria local, de modo a que
Moçambique não seja apenas exportador de matéria prima em bruto.
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Os projectos qualificados proporcionarão licitações para:
– O volume total de gás solicitado em GJ durante um período de leilão de 20 anos;
– O preço de licitação em $/GJ (dólares nominais); e
– Factores de agravamento/ajustamento anual do preço de licitação.
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As centrais eléctricas que sirvam exclusivamente o mercado doméstico,
pequenas e médias empresas e consumidores domésticos receberão
gás natural ao preço mínimo doméstico (PMD) mais os custos do
gasoduto e de distribuição.
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Critérios para qualificação e atribuição
de gás
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Prioridade dos projectos
Preço do gás superior ao PMD (preço mínimo do gás no mercado doméstico).
Quantidade de gás solicitada pelo promotor
Calendário para desenvolvimento do projecto
Localização dos megaprojectos
Desenvolvimento em Palma
Qualificações técnicas e financeiras do proponente e do projecto
Compromisso do promotor em empregar Moçambicanos
Compromisso do promotor de usar fornecedores de serviços e bens
Moçambicanos para as instalações
Compromisso dos promotores de mitigar impactos sociais e ambientais
Responsabilidade Social Empresarial.
Benefícios para Moçambique
Interesse nacional
Preço de venda do produto final no mercado nacional