The Mozambique LNG project is a landmark development in the country’s emerging natural gas sector, aiming to monetise significant offshore gas reserves discovered in Area 1 of the Rovuma Basin.
Located in Cabo Delgado province, the project responds to global demand for diversified LNG supply and positions Mozambique as a key exporter. It aligns with the government’s strategy to attract large-scale energy investment and promote industrialisation through resource-led growth. The project was the first onshore LNG scheme in Mozambique and marks the single largest private investment in the country’s history.
SPECIFICATIONS: Mozambique LNG will initially comprise two liquefaction trains with a combined design capacity of 13.12 million tonnes per year of LNG. The facility will process feedstock from the Golfinho and Atum gasfields in Offshore Area 1, where approximately 1.84 tcm (65 tcf) of recoverable natural gas resources have been confirmed. The project scope includes subsea wells, offshore pipeline infrastructure, an onshore LNG plant, and a marine terminal for export operations.
KEY PLAYERS: The project is operated by TotalEnergies EP Mozambique Area 1 Limitada, a wholly owned subsidiary of TotalEnergies, which holds a 26.5% participating interest. Other stakeholders include Mitsui (20%), ENH (15%), ONGC Videsh (10%), Bharat PetroResources (10%), PTT Exploration and Production (8.5%), and Oil India (4%).
INVESTMENT: A final investment decision was taken in June 2019, approving a total project budget of approximately USD 20 billion. It is the first LNG project on the African continent to achieve financial close with a project finance structure of this magnitude. The financing package includes contributions from multiple export credit agencies, development banks, and commercial lenders.
TIMELINE: Construction began in 2019, but operations were suspended in 2021 following a declaration of force majeure due to security risks in the Cabo Delgado region. In 2023, TotalEnergies confirmed that conditions for restart had been met and is now preparing to resume full project execution. First LNG is expected to be produced in 2029, with revised construction and commissioning schedules now in development.
TECHNOLOGIES: The onshore plant will employ proven liquefaction technologies and modular construction methods to fast-track delivery. The marine terminal will accommodate LNG carriers for global exports, and associated infrastructure includes gas processing units, condensate stabilisation, and utilities. The project is also investing in digital systems and advanced safety technologies.
ENVIRONMENTAL BENEFITS: Mozambique LNG incorporates an environmental and social management plan designed to minimise its ecological footprint. Measures include habitat preservation, emissions mitigation, and the development of low-impact facilities. The project includes commitments to reduce greenhouse gas intensity and support biodiversity in affected zones.
OTHER BENEFITS: The project is expected to generate up to 5,000 jobs during peak construction and will support long-term employment through local content development and training programmes. It also includes community investment initiatives in health, education, and infrastructure, aiming to promote inclusive development in Cabo Delgado.
MARKET OUTLOOK: Mozambique LNG is well-positioned to serve Asian and European markets, offering buyers long-term security of supply from a politically neutral geography. With global LNG demand forecast to grow significantly through 2040, the project is expected to be a strategic asset in meeting future energy needs while supporting Mozambique’s economic transformation.