Mozambique - Country Commercial Guide
Oil & Gas
Last published date:


Over the coming decade Mozambique is expected to become a major liquified natural gas (LNG) exporter due to the discovery of over 180 trillion cubic feet (TCF) of natural gas reserves in the Rovuma basin in the north of the country. These discoveries are spread over two concessions, one led by Total Energies and the other jointly led by Eni and ExxonMobil. The U.S. Export-Import Bank has committed to loaning $4.7 billion of the approximately $20 billion investment into the Area 1 Mozambique LNG project led by TotalEnergies, while the U.S. Development Finance Corporation has extended $1.5 billion in sovereign risk insurance to Exxon Mobil’s Area 4 Rovuma LNG project, together representing the U.S. Government’s largest investment commitment on the continent.  

TotalEnergies’ Area 1 project plans to build up to six LNG trains. The first two trains reached final investment decision (FID) in 2019 and are valued at $20 billion. The development of onshore LNG megaprojects has been delayed by insurgency in the north, causing TotalEnergies to declare force majeure in April 2021. In 2023, TotalEnergies announced that due to improvements in security they had begun to prepare to lift force Majeure and restart the project. full restart is set for the first quarter of 2024. Total selected a joint venture of contractors led by Saipem and McDermott to construct the facilities, including dedicated airstrip and port facilities located in the Afungi LNG Park. This project is targeting exports destined for Asian and European markets as well as over 400 MMCF reserved for domestic uses.

The second concession is in Area 4, in which Eni leads all offshore operations, and ExxonMobil leads the onshore LNG facilities is also located in the Afungi LNG Park. Area 4 also has plans to develop two onshore LNG trains with their FID planned for early 2025, estimated at a cost of $25 billion. In 2017, Eni announced the FID for $8 billion for the construction of six subsea wells connected to a Floating LNG (FLNG) production facility that has been exporting LNG since November 2022. Eni has since submitted plans to develop a second FLNG vessel, this plan is widely expected to be approved by the government.

Mozambique has other gas production operated by Sasol (South Africa) in Inhambane Province, which holds proven reserves of 2.6 TCF. The natural gas is produced and processed at a central facility in Temane and then exported via an 865 km pipeline to South Africa, with a link to southern Mozambique for domestic use. Additionally, Sasol is developing an integrated oil and liquefied petroleum gas project adjacent to its existing petroleum facility, this project is valued at over $700 million. The project includes 13 wells and a liquid propane gas (LPG) production facility at an estimated cost of $1.4 billion.

All exploration concessions are assigned by the National Petroleum Institute (Instituto Nacional de Petróleo; INP) through public tenders. Production contracts can then be negotiated once petroleum reserves are discovered.

In 2018, INP has signed concession contracts for petroleum exploration and production in offshore blocks in the Angoche and Zambezi Basins and onshore blocks in the Mozambique Basin to four consortiums led by ExxonMobil, Sasol, ENI, and Buzi. As of July 2023, only Eni has started exploration activities in these blocks.

Empresa Nacional de Hidrocarbonetos (ENH), the state-owned hydrocarbon company, represents the Mozambican Government in petroleum operations. The law stipulates that ENH participates as a stakeholder in petroleum production operations, as well as exploration projects. ENH is also engaged in other national flagship projects, such as the oil and gas terminal expansion in the Port of Pemba and providing services to project operators like campsite management, offshore logistics, and port facilities. ENH typically provides these services in partnership with private sector companies specialized in these domains. In partnership with Korean gas company Kogas, ENH also operates a gas distribution network to provide households and industry with piped gas into the south of Mozambique.

The Government of Mozambique has determined that a portion of natural gas production should be used locally to address the needs of the domestic market. The government is also working to develop a sovereign wealth fund (SWF) to govern future gas revenues, and a SWF bill is under discussion in parliament.

The National Petroleum Institute (INP), which regulates the industry, organizes tenders to identify companies interested in developing industrial projects. U.S. Companies should expect to see new tenders for domestic gas projects coming out in the next year.

Leading Sub-Sectors

· Engineering and steel structure fabrication services

· Oil & gas machinery and services

· Oil & gas parts and equipment

· Safety and security equipment and services


For the next five years, opportunities for U.S. equipment suppliers are expected to be driven by the construction of TotalEnergies’ LNG plant, Eni’s second FLNG plant, and ExxonMobil’s LNG plant. The LNG development plan includes two 180,000 cubic meter LNG storage tanks, condensate storage, a multi-berth marine jetty, and associated utilities and infrastructure. ExxonMobil’s development plan includes the construction of two liquefied natural gas trains which will each have the capacity to produce 7.6 million tons of LNG per year and related facilities. All three of hese project have an onshore base in the Afungi Park, hosting all the supporting infrastructure including accommodation facilities, port and airport infrastructure, as well as specialised tax and work visa regimes.

Companies should also track potential domestic gas project tenders from the Mozambican Government, which could be major opportunities for midstream and downstream project developers.