Mozambique can benefit from EU plans to recognise LNG as green fuel, says Absa bank

By David Whitehouse
Posted on Wednesday, 12 January 2022 15:25

A general view of Mozambique's Sasol's gas project is seen in Temane, at the Inhambane province, Mozambique
A general view of Mozambique's Sasol's gas project is seen in Temane, at the Inhambane province, Mozambique. REUTERS/ Juda Ngwenya/File

Mozambique is leading a group of African countries that stands to benefit if the European Union follows through on proposals to classify liquid natural gas (LNG) as a green fuel.

A proposal to recognise LNG as well as nuclear power as green was distributed by the European Commission to member states at the end of December. If a majority of members support the proposal, it would come into effect in 2023.

Critics argue that LNG use is incompatible with the Paris Agreement on climate change. In December, Friends of the Earth mounted a legal challenge seeking to block the UK government from financing LNG development in Mozambique.