Planned Oil and Gas Projects In Mozambique Before 2030
Massive natural gas resources discovered in the Rovuma basin, offshore Northern Mozambique have become a magnet for foreign direct investment.
Major oil companies of the world such as Franch oil giant Total, Italy’s Eni and Us Major Exxon Mobil are developing LNG export facilities and infrastructures to commercialize the large scale offshore gas resources in the country.
In terms of announced project, Mozambique took the lead in Sub-Saharan Africa after Nigeria. Two LNG projects reached the final investment decision (FID) in the period of two years.
The first FID on the Eni-led 3.4 MTPA Coral South Floating LNG project was reached on May, 2017. Total-operated Mozambique’s 12.88 million tonnes per annum (MPTA) LNG project reached FID on June 18, 2019. And Eni-Exxon Mobil-led 15.2 MTPA Rovuma LNG projects are expected to reach FID on April 2020.
In terms of the announced project, Mozambique leads among countries in East African natural gas development.
In just two years the country’s gas sector receives two Final investment decisions (FIDs).
Read also: Is Aminex Getting Ready To Supply the Much-Needed Gas In Tanzania
The first FID on Eni led Coral South Floating LNG project was reached in May 2017.
And the second final investment decision(FID) for Total operated Mozambique LNG project was reached on June 18, 2019
Capital expenditure of about US$7.7 billion is expected to be spent on the development of planned projects in Mozambique between now and 2025, which is the highest second capital expenditure on planned upstream projects in Sub Saharan Africa after Nigeria. According to the research company, Global data,
Investor’s interest in Mozambique’s gas sector is huge. Big players are rushing to grab shares in Mozambique’s potential blocks. In March 2017, US company Exxon Mobil purchased a 25 percent share of Italian energy company Eni in Area 4 of the Rovuma Basin for $2.8 billion. Under the deal Eni is responsible to operate Coral South floating LNG project and lead upstream operations while Exxon Mobil will lead the construction of natural gas liquefication facility onshore
In March 2019, Eni signed a farm-out agreement with Qatar Petroleum to divest a 25.5% interest in the block A5-A.
In September 2019, Total acquire Anadarako’s 26.5 % interest in the Mozambique LNG project for $3.9 billion.
Natural Gas Production
Mozambique has discovered 125 trillion cubic feet (TCF) of natural gas at the Rovuma Basin in Northern Mozambique. This is enough gas to supply domestic markets as well as Italy and Germany for 15 years.
Mozambique has discovered 125 trillion cubic feet(TCF) of natural gas in Rovuma basin. But only two fields, Temane and Pande operated by South Africa Sasol producing gas for domestic and industrial customers since 2004. Produced gas are also transported through 865 kilometer Mozambique -South Africa pipeline to Sasol’s industrial customers in South Africa.
Planned LNG projects In Mozambique before 2030
| Projects | Cost (US$) | Capacity(mtpa) | Final Investment Decisions (FID) | Planned Start Date |
| Coral South FNLG | 9.9 billion | 3.4 | June 2017 | 2022 |
| Mozambique LNG | 20 billion | 12.88 | June 2019 | 2024 |
| Rovuma LNG | 30 billion | 15.2 | April 2020 | 2025 |
As you can see above.
From the 3.4 (MTPA) Eni led Coral South Floating LNG project through 12.88MTP Total operated Mozambique LNG project. And 15.2MTPA from Eni- Exxon Mobil Area 4 Ruvuma LNG project
Mozambique is set to become the third-largest LNG exporter after in the 2020s with a capacity of around 30 million tonnes per annum (MTPA) once LNG facilities are fully operational.
