By TBY | Mozambique | Jun 26, 2015
The location of Pemba, next to Rovuma Basin and in relative proximity to the expanding Asian market, will play a key role in the development of Mozambique's future ventures.
In 1904, the Niassa Company established a small port on the astonishingly beautiful coast of Cabo Delgado, taking advantage of the opportunity of what is one of the largest natural harbors in the world. As Pemba steadily grew around its port, it became a top tourist destination, thanks to its glorious beaches, coral reefs and proximity to the Quirimbas National Park, one of the most prominent natural attractions in southern Africa. Today, more than 100 years after its creation, Pemba is transforming itself into one of the most important hubs on the African coast, and the first port to be built in Mozambique that is entirely dedicated to international oil and gas trading.
Mozambique’s recent natural gas discoveries by Anadarko and ENI in the Rovuma Basin area have completely changed the perspectives of Mozambique’s economy. The reserves are believed to be above 190 trillion cubic feet. It now aspires to be the world’s third largest LNG exporter, according to Anadarko Petroleum’s studies. The Texas-based giant calculates that there are enough resources to support the development of 50 MMTPA in future years, which would represent approximately the 20% of the current global demand.
The government is facing this opportunity by constructing the Pemba Port Logistical Base. The mission of this enormous project is to offer logistic and integrated port services to the companies operating in Rovuma Basin, Anadarko and ENI, and its suppliers.
The first phase of the base, which is to be completed by the second half of 2016 will cost around $200 million and it will build 300 meters of quay, capable of receiving ships with a maximum draught of 12 meters, and it will have a variety of other facilities on a 36-hectare plot. The entire project will consist of four phases, which will sum a total of $1 billion, and it will construct 5km of quay. There are also future plans of building more infrastructure as a shipyard, used to repair the vessels, and an LNG terminal. The next three phases will start depending on the necessities of the operators. The project has been sub-leased by ENHILS, a partnership between the National Hydrocarbon Company of Mozambique and Orlean Invest, the leading logistics partner for the oil and gas industry in Nigeria, Mozambique, and Angola.
The construction has been conceded to Portos de Cabo Delgado, a company set up by the Government of Mozambique, through ENH and Mozambique Ports and Railways (CFM). PCD will give support to the onshore and offshore logistic needs of the gas and oil industry in the area.
The government has acknowledged the great opportunity they are facing and are keeping up with the many challenges that this opportunity will create. There is no doubt that the development of the port will transform Pemba into one of the core hubs, not only in northern Mozambique, but in all of sub-Saharan Africa.