With 100 trillion cubic feet of gas reserves and a series of major projects underway, Mozambique’s gas sector has the potential to transform the regional energy landscape.
For Africa to alleviate energy poverty while tackling climate change, it is crucial to tap into the significant potential of the continent’s natural gas sector. Mozambique, with its rapidly expanding gas industry, emerges as a significant player in this endeavor. Boasting over 100 trillion cubic feet (tcf) of proven natural gas reserves and currently advancing major liquefied natural gas (LNG) projects, this southern African nation holds the key to fostering long-term and sustainable economic development throughout the region for the foreseeable future.
Following the discovery of significant gas reserves in Mozambique’s Rovuma Basin, the country is focused on developing projects to increase gas supply and exports. The Mozambique LNG project, led by French energy major TotalEnergies, is described by the company as the country’s first onshore LNG plant and combines offshore gas fields with an onshore facility. With a target capacity of 12.8 million tons per annum (mtpa) of LNG, it utilizes resources from the Golfinho and Atum gas fields in Area 1 of the Rovuma Basin, holding approximately 75 tcf. Construction began in 2019, but security threats in Cabo Delgado province led to a force majeure declaration in 2021. However, both the project developers and the Mozambican government are committed to resuming construction activities. To facilitate this, the African Energy Chamber’s (AEC) Invest in African Energy Forum in Paris on June 1 is set to play a crucial role in securing the necessary investments for the project’s continuation.
Additionally, global major ExxonMobil is developing the Rovuma LNG terminal in Mozambique. The project involves the construction of multiple liquefaction units which would receive natural gas daily from three reservoirs in the Rovuma Basin. Despite project delays, the company has made strides towards getting the project back on track, going as far as to increase the project’s capacity from 15.2 mtpa to 18 mtpa, a testament to the size of the basin and the commitment of the company itself. The company is seeking qualified firms to express their interest in the midstream portion of the project, offering an exciting opportunity for potential investors. This development will be highlighted at the Invest in African Energy Forum in Paris, presenting a platform for interested parties to explore investment prospects in Mozambique’s gas sector.
The Coral Sul project has also shown its resilience as exemplified by the successful production at the Coral Sul Floating LNG (FLNG) site. In a significant milestone, the project celebrated its inaugural shipment of LNG to Croatia in November 2022. Situated in the Rovuma Basin off the coast of Mozambique, the Coral Sul project boasts an impressive capacity to produce approximately 450 billion cubic meters of gas. At its core is a substantial FLNG facility, measuring 432 meters in length and 66 meters in width, operating under the guidance of Italian supermajor Eni as part of the Coral South initiative. With the anticipation of substantial revenue generation, this ambitious undertaking will make a significant contribution to the country’s overall economic growth.
Meanwhile, Eni has also commenced drilling the Raia-1 Well in Block A5-A in the Angoche Basin offshore Mozambique, marking Eni’s first drilling activity in Mozambique in eight years.
Amidst this captivating backdrop, the Invest in African Energy Forum in Paris emerges as a timely opportunity for Mozambique to harness the potential of its natural gas sector through increased investments. The forum serves as a dynamic platform, fostering discussions, networking, and forging essential commitments to propel large-scale natural gas projects forward. It paves the way for collaboration among industry leaders, policymakers, and investors, enabling the sharing of expertise, resources, and innovative ideas. With a focus on attracting sustainable investments, the forum holds the potential to unlock the full economic and social benefits of Mozambique’s natural gas resources, driving growth, job creation, and energy security in the region.
“Nurturing Mozambique’s gas projects is crucial for economic growth and energy security in southern Africa. With abundant reserves and ongoing projects, Mozambique offers a significant opportunity for domestic and international investors. The Forum will showcase Mozambique’s potential and attract increased investments to its gas sector. Through collaboration and strategic partnerships, we can unlock Mozambique’s true potential and accelerate gas resource development, benefiting the country and the broader region,” states NJ Ayuk, Executive Chairman of the AEC.
The Invest in African Energy Forum in Paris provides a platform to highlight the potential of Mozambique’s gas sector. Through networking, presentations, and panel discussions, the event allows stakeholders to delve into Africa’s natural gas landscape and seize investment opportunities, including those in Mozambique. The forum plays a pivotal role in advancing large-scale projects and fostering new investments in Mozambican gas.
Taking place on June 1st, 2023, the Invest in African Energy Forum in Paris is open to all guests and RSVP is essential. RSVP to [email protected].
