Global demand for natural gas remains high – and Siemens Energy is one of the major beneficiaries. As the Süddeutsche Zeitung reports, the Munich-based technology group must transport its gas turbines through the Saudi desert, among other routes, to reach its customers. The reason: despite the war in the Middle East and the closure of the Strait of Hormuz, many countries continue to rely on the fossil fuel.
One example is the controversial liquefied natural gas project “Mozambique LNG” on the northern coast of Mozambique. French company Total Energies resumed the project at the end of January after a four-and-a-half-year pause. The budget is around 20 billion US dollars – almost as much as the African country’s gross domestic product. Siemens Energy is involved as a supplier, providing turbine technology for the plant.
The project, however, faces criticism. Human rights organizations have leveled massive accusations against Total Energies and its partner companies. The security situation in Cabo Delgado province is tense: since 2017, militant Islamist groups have repeatedly carried out attacks, resulting in thousands of deaths and hundreds of thousands of displaced people. For security reasons, the plant operates behind a double fence, and supplies arrive almost exclusively by sea or air.
For Siemens Energy, the business remains lucrative. The company benefits from the globally rising demand for natural gas, which is further fueled by the Iran war and the closure of the Strait of Hormuz. Demand for liquefied natural gas (LNG) is high, and prices are rising. Analysts see Siemens Energy as one of the winners of this development.
Source: www.sueddeutsche.de
