Expertise and assets for Mozambique’s energy industry

November 14, 2024

Michele Poggi, managing director of Saipem Mozambique, talks to The Energy Year about incorporating patented technologies into Mozambique’s energy value chain and the growing opportunities for EPC companies in Mozambique’s upstream segment. Saipem is an international engineering and construction company specialising in energy and infrastructure.

Could you provide an assessment of Mozambique’s role within Saipem’s global business strategy?
Mozambique is rich in natural resources and has the potential to be a key player in the energy sector. This makes the country particularly significant for Saipem’s activities as an EPCI contractor with expertise, technologies and assets to work on complex midstream and downstream infrastructures such as gas treatment plants, compressor stations, LNG and degasification infrastructures, fertilisers, low-carbon fuels and gas pipelines, both offshore and onshore.
Saipem can rely on its state-of-the-art fleet for deep and shallow water offshore drilling and installation to support the upstream developments during the preliminary assessment, exploration and production release of conventional and unconventional reserves which are present in the country. We can also leverage long-term relationships with major energy companies.
Mozambique expects rapid growth of its LNG expansion capacity, and Saipem has almost 50 years of experience in constructing LNG plants and infrastructures worldwide using advanced technology to liquefy, transport and regasify natural gas. We can also provide innovative solutions for LNG transportation by sea.
Moreover, working in Mozambique can offer Saipem the opportunity to further grow its presence in Sub-Saharan Africa, where the company has been present for 60 years, while supporting the development of Mozambique’s energy projects and generating a positive economic impact on the country.

How is Saipem incorporating new technologies into its projects in Mozambique?
Innovation and technological development for the energy sector are at the core of our activities and business. This approach is also well suited for Mozambique’s rapidly growing energy sector. We can offer solutions for LNG production, CO2 capture, fertiliser manufacturing, renewable energy and sustainable infrastructure in addition to integrating new technologies and processes into projects to increase efficiency, safety and sustainability for our clients.
As an example, Saipem can integrate comprehensive solutions across the entire CO2 value chain in Mozambique LNG production, thus reducing the carbon footprint and supporting global decarbonisation goals. This is possible also thanks to our proprietary CO2 capture technologies, such as Bluenzyme.
Working with LNG as a raw material, Saipem is also active in the production of fertilisers, which are critical to expanding cultivable areas and increasing food production. Thanks to our patented Snamprogetti urea technology, we are one of the main players in the global production of urea, the most important fertiliser in agriculture.
Saipem also invests in renewable energy solutions and low-carbon technologies to reduce GHG [greenhouse gas] emissions and promote sustainable development, such as solar or wind power, low-carbon fuels and eco-friendly practices throughout the project lifecycle. These are especially important in regions like Mozambique where environmental concerns are paramount.
We are pursuing net zero in a way that aligns with Mozambique’s objectives. We are upgrading our ships to make them more environmentally friendly. In the offshore sector, we have achieved remarkable results with our subsea drone technology, bringing innovation to the industry and enabling the decarbonisation of asset integrity control and maintenance of underwater infrastructure through our autonomous resident subsea drones, which improve the quality of the survey and safety while lowering GHG emissions, operational risks and project costs.
LNG is the focus of Mozambique’s energy sector, but Saipem can therefore also provide a wide range of solutions in renewable energy and sustainable infrastructures.

 

Are there specific initiatives Saipem is undertaking to empower the Mozambican workforce and develop its capabilities in the energy sector?
In the more than 50 countries where we operate, Saipem contributes to the creation of value in local communities and environments, in line with the 2030 Agenda for Sustainable Development.
Prioritising local content and community development initiatives is not only a matter of regulatory compliance for Saipem but a sign of its commitment to creating lasting positive impacts in all the countries in which we operate. We are committed to this approach also in Mozambique.
In Mozambique, Saipem has provided training programmes to teach technical and vocational skills to local workers. These skills are relevant to the energy industry and include welding, plumbing, pipefitting and instrumentation, as well as electrical and civil engineering project management. The goal is to maximise the utilisation of local resources and provide trainees with opportunities to work on projects in the region. Additionally, Saipem offers scholarships, internships and exchange programmes for selected university students.
The value generated locally translates into new jobs, demand for local services and goods, construction and the improvement of infrastructure. We further contribute to the virtuous cycle with training and development of professional skills and support for education.

The global energy industry is shifting towards renewable resources. What steps is Saipem taking in this context, and could you provide examples of work being undertaken in Mozambique or globally?
Saipem is actively working on energy transition, providing innovative solutions to produce green hydrogen and ammonia using water electrolysis and renewable energy sources, as well as blue hydrogen and ammonia using natural gas and carbon capture and storage. We have a dedicated business for the offshore wind sector, and we have completed installation campaigns for major offshore wind development projects in the North Sea.

What is your outlook for the EPC segment in Mozambique? Do you foresee specific challenges or opportunities?
The EPC segment plays a crucial role in the development and execution of energy projects in Mozambique, but it depends on several factors, such as security, investment climate, market demand and technological advancements.
Mozambique has large offshore natural gas reserves that attract international companies and investors and offer opportunities for EPC companies in upstream and LNG facilities, domestic gas monetisation and related infrastructures. The big interest in renewable energy projects in Mozambique, including hydroelectric, solar and wind power, can help the country generate clean energy, limit GHG emissions and reduce climate change.
Saipem has a long-standing presence in Mozambique and a deep knowledge of the country’s environment, logistical infrastructures and local content. This makes Saipem ready and well-positioned in the Mozambican energy sector. We have the competencies to create synergies and form strategic partnerships with both local and international companies, offering innovative, cost-effective solutions and deploying unique fleet and fabrication competencies which can integrate the evolving local infrastructures.

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