<\/span><\/h2>\n\n\n\nWith\u00a0natural gas reserves estimated at over 100 trillion cubic feet (tcf)<\/strong>4, Mozambique is set to become one of the world's leading exporters of liquefied natural gas (LNG), transforming itself into a strategic energy hub for Africa and the world. Despite security challenges, market volatility and the global energy transition, the country is attracting billion-dollar investments from giants such as TotalEnergies, ExxonMobil, Eni and CNOOC, with projects that could generate\u00a0USD 500 billion in revenue by 2045<\/strong>.<\/p>\n\n\n\n
<\/figure><\/div>\n\n\nThis article explores how Mozambique is harnessing its resources to position itself as a major player in the LNG market, analysing major projects, economic impact, geopolitical risks and future prospects.<\/p>\n\n\n\n
\n\n\n\n<\/span>The Pillars of the Mozambican LNG Dream<\/span><\/h2>\n\n\n\n<\/span>1. Coral South FLNG: The First Success<\/strong><\/span><\/h3>\n\n\n\nOperated by Eni, the project\u00a0Coral South Floating LNG<\/strong>\u00a0became operational in 2022, marking Mozambique's debut as an LNG exporter. With a capacity of\u00a03.4 million tonnes per year<\/strong>, this floating facility is the first of its kind in Africa and has already signed long-term supply agreements with BP.<\/p>\n\n\n\n
<\/figure><\/div>\n\n\n\nInnovative technology<\/strong>The FLNG platform avoids the need for onshore infrastructure, reducing security risks in the turbulent province of Cabo Delgado9.<\/li>\n\n\n\nFuture Expansion<\/strong>: Eni plans to launch\u00a0Coral North FLNG<\/strong>doubling production by 2027.<\/li>\n<\/ul>\n\n\n\n<\/span>2. TotalEnergies' Mozambique LNG: A Giant in Waiting<\/strong><\/span><\/h3>\n\n\n\nWith an initial investment of\u00a020 billion<\/strong>TotalEnergies' onshore project in Area 1 of the Rovuma Basin promises a capacity of\u00a012.9 million tonnes per year<\/strong>4. However, work has been suspended since 2021 due to the terrorist attacks in Palma.<\/p>\n\n\n\n\nShooting plans<\/strong>CEO Patrick Pouyanne announced negotiations to reactivate the project by the end of 2025, with 80% funding already confirmed.<\/li>\n\n\n\nLocal impact<\/strong>: The project will include the construction of schools, hospitals and training programmes for local communities.<\/li>\n<\/ul>\n\n\n\n<\/span>3. ExxonMobil and Eni's Rovuma LNG: The 18 Million Ton Bet<\/strong><\/span><\/h3>\n\n\n\nExxonMobil and Eni aim to achieve the\u00a0Final Investment Decision (FID)<\/strong>\u00a0in 2025 for their onshore mega-plant in Area 4, which will add\u00a018 million tonnes per year<\/strong>\u00a0to Mozambican capacity.<\/p>\n\n\n\n
<\/figure><\/div>\n\n\n\nStrategic Collaborations<\/strong>: The consortium includes ADNOC (10%), CNPC (70%) and KOGAS (10%), with Eni responsible for offshore production and ExxonMobil for liquefaction.<\/li>\n\n\n\nLogistical challenges<\/strong>: The construction will require more than 15,000 workers and the expansion of the port of Pemba.<\/li>\n<\/ul>\n\n\n\n \n\n\n\n<\/span>Economic Impact: Between Growth and Inequality<\/span><\/h2>\n\n\n\n<\/span>Colossal Income and Infrastructure Development<\/span><\/h3>\n\n\n\n\nGovernment revenue<\/strong>: The IMF estimates that Mozambique could collect\u00a0500 billion by 2045<\/strong>\u00a0from LNG exports, with GDP growth of\u00a024% annual<\/strong>\u00a0between 2021 and 2025.<\/li>\n\n\n\nCritical infrastructures<\/strong>: The Project\u00a0Gas-to-Power Temane<\/strong>operating from January 2025, will produce\u00a0450 MW<\/strong>\u00a0of electricity, connecting the Pande and Temane fields to Maputo via a 563 km transmission line.<\/li>\n<\/ul>\n\n\n\n
<\/figure><\/div>\n\n\n<\/span>Employment and Local Content<\/span><\/h3>\n\n\n\n\nJobs<\/strong>: The creation of\u00a030,000 direct seats<\/strong>\u00a0in LNG projects, with training programmes for Mozambican engineers and technicians.<\/li>\n\n\n\nCriticalities<\/strong>Only 15% of the current workforce is local, raising concerns about the actual economic impact on communities.<\/li>\n<\/ul>\n\n\n\n \n\n\n\n<\/span>Challenges and Risks: The Other Side of the Medal<\/span><\/h2>\n\n\n\n<\/span>1. Security in Cabo Delgado<\/strong><\/span><\/h3>\n\n\n\nThe gas-rich northern province has been the scene of a jihadist insurgency since 2017. Attacks on Palma in 2021 forced TotalEnergies to declare\u00a0force majeure<\/em>delaying projects for years.<\/p>\n\n\n\n\nOngoing solutions<\/strong>: The Mozambican government, with the support of Rwanda and SADC, has intensified military operations, but stabilisation will take time.<\/li>\n<\/ul>\n\n\n\n<\/span>2. Financial and Environmental Risks<\/strong><\/span><\/h3>\n\n\n\n\nPublic Debt<\/strong>: Mozambique's external debt amounts to\u00a029.5 billion dollars<\/strong>with 20% linked to energy projects.<\/li>\n\n\n\nClimate impact<\/strong>According to the World Bank, LNG projects could emit\u00a04.5 billion tonnes of CO2<\/strong>\u00a0in their life cycle, threatening coastal ecosystems.<\/li>\n<\/ul>\n\n\n\n<\/span>3. Volatility of Global Markets<\/strong><\/span><\/h3>\n\n\n\nGlobal demand for LNG could fall by\u00a030% by 2040<\/strong>\u00a0because of the energy transition, exposing Mozambique to the risk of\u00a0stranded assets<\/em>.<\/p>\n\n\n\n \n\n\n\n<\/span>International Collaborations: Who's Driving the Game?<\/span><\/h2>\n\n\n\n<\/span>1. China and the Middle East: New Dominant Actors<\/strong><\/span><\/h3>\n\n\n\n\nCNOOC<\/strong>: The Chinese company acquired five offshore blocks in the Save and Angoche areas, expanding its influence in the upstream sector.<\/li>\n\n\n\nADNOC<\/strong>: The Emirati company holds 10% in Area 4, aiming to expand its global LNG capacity.<\/li>\n<\/ul>\n\n\n\n
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