Mozambique is entering a transformative decade with the restart of onshore LNG projects in Cabo Delgado, positioning the country on the brink of significant economic evolution. Around 30 million tons per annum from 2030 onwards is expected, alongside $100 billion in government revenues over 25 years – figures that could reshape the future of one of the poorest countries in the world.
These large-scale projects are projected to generate at least 40,000 jobs, both directly and indirectly, particularly during the construction, commissioning and startup phases. For Mozambicans – especially those from Cabo Delgado – this represents a rare opportunity for stable employment and improved livelihoods. However, the true value of employment lies not only in numbers but in quality and accessibility.
It is essential that Mozambican workers are prioritized for these roles and are not confined to low-skilled positions. Instead, there should be significant investment in education, vocational training and capacity building to enable local workers to move into technical, specialized and managerial roles. This would help reduce reliance on expatriates, who are often paid significantly more than local workers in equivalent positions within the energy industry. Over the next decade, LNG developments are expected to contribute meaningfully to the emergence of a skilled national workforce capable of sustaining the energy sector and beyond.
LNG projects require vast supply chains, creating a unique opportunity for Mozambican entrepreneurs and SMEs to participate in and benefit from the industry. As a citizen, I foresee transparent and fair procurement processes in which the 2,500 registered Mozambican businesses are able to compete and grow. More importantly, there should be a shift toward long-term partnerships rather than short-term contracts, enabling these businesses to scale sustainably.
Equally important is the development of local infrastructure, including interstate roads and the expansion of Pemba and Nacala ports in the northern region, which will play a critical role in supporting these projects. There is also a need to increase the capacity of Hospital Provincial de Pemba – the largest in Cabo Delgado – which remains underdeveloped and strained. In addition, increased local and international passenger traffic will drive airport development for both people and goods. Maputo and Pemba airports are expected to become the busiest in the country, creating opportunities for expanded capacity.
A $100 million Sasol-operated facility in Inhassoro, southern Mozambique, has begun LPG production, aiming to reduce nearly 70% of the country’s LPG imports. This follows 24 years of natural gas extraction and export to South Africa via an 860 km pipeline connecting the two countries. Although LNG projects in Cabo Delgado are primarily export-oriented, Mozambicans have growing expectations regarding domestic LPG production and accessibility.
It is anticipated that gas extracted in the country will also be consumed domestically, reducing import dependency while lowering costs and improving living standards and environmental outcomes. To ensure effective LPG distribution, investments in distribution networks will be essential, supporting workforce expansion and local economic development.
At the same time, in terms of natural gas monetization, there is an expectation that the government will promote alternatives such as fertilizer production, given that natural gas accounts for more than 70% of the input in ammonia and urea. Agriculture remains one of the country’s economic backbones, contributing approximately 25% of GDP, yet fertilizer usage is below 5% due to high costs. Additionally, around 22% of fertilizers used in Mozambique pass through the Strait of Hormuz, leaving supply vulnerable to maritime disruptions.
Investing in domestic fertilizer production would not only create export opportunities but also enhance land productivity, strengthen food security and drive economic growth through increased farm profitability, job creation and expanded agricultural trade.
For communities in Cabo Delgado, LNG development is not an abstract concept but a lived reality that has already brought both opportunities and challenges. The suspension of LNG activities in 2021 due to insurgency highlighted the region’s fragility. While evidence remains limited, international security analysts have suggested that some local individuals may have been recruited into insurgent groups, driven in part by feelings of exclusion from LNG projects and broader economic opportunities.
In this context, it is critical that LNG operators, alongside the government, actively consult, respect and involve local communities in decision-making processes that affect their land and livelihoods. Without strong community relations, even economically viable projects risk fueling social tensions and long-term instability. Benefits must be equitably distributed, and communities should feel included rather than marginalized.
The next decade of onshore LNG development in Mozambique holds immense promise – but also significant responsibility. The opportunity is not only for economic expansion, but for inclusive progress. This means creating jobs that empower Mozambicans, supporting businesses that grow alongside the industry, and ensuring that communities are treated as true partners in development.
