As you know, despite the growing profits of private mining companies around the world, investment in oil and gas development is steadily declining as major market players fear a tightening environmental agenda. This threatens to increase the deficit, rising prices, another round of the global crisis and ultimately the complete degradation of industry and the global economy. However, there is still a way out. Bloomberg announces a promising source of funding to save the industry.
According to the article, citing sources, the World Bank will be involved in financing gas projects in Mozambique to ensure better access to energy, as the costs in this case will be the cheapest among all other options. This was stated by the World Bank’s Vice President for Eastern and Southern Africa, Victoria Kwakwa, in an interview with Bloomberg. These alternative supplies could fill the missing volumes and stabilize the entire sphere.
In 2017, the World Bank promised to stop financing oil and gas exploration and production projects after 2019. Little by little this promise has been fulfilled. But this Monday, March 13, a World Bank official said the institution was considering financing natural gas projects in Mozambique (where private companies are refusing) to provide the cheapest possible energy for the global market.
Data from the lending institution showed that only 30.6% of the Mozambican population had access to electricity in 2020. Thus, the assistance of World Bank funds for the development of minerals in this country will not only allow to save the local population, but will also have an impact on the global energy and economic system as a whole. The rapid deployment of new wells could make a significant contribution to Europe’s energy security, notably through increased supply diversification and support for a fair and sustainable energy transition.
Otherwise, no company will agree to create a portfolio of investments in the extractive industry of Mozambique. The fact is that international oil and gas companies had several projects on the local plateau, where large volumes of raw material deposits have been discovered in recent years. Liquefied natural gas (LNG) from Africa was seen as one of the EU’s options to replace Russian pipeline supply. But insurgency and attacks near fuel and LNG production areas have halted the TotalEnergies project in Mozambique. Perhaps new attempts to revive mining in this country will be more successful.
