Tanzania vs. Mozambique: A Comparative Analysis of Major LNG Investments and Their Regional Impacts

1.Investment Scale


– Estimated Cost: $42 billion

– Significance: One of the largest energy projects in eastern and southern Africa.


– Total Investment: Not fully disclosed

– Major Projects:

– Total-led Area 1: ~$20 billion

– ExxonMobil’s Rovuma LNG: ~$15 billion


Tanzania’s LNG project is notably larger in financial terms, indicating a more substantial investment in infrastructure and long-term energy production capabilities.

This size and scale may attract more international attention and investment, potentially boosting Tanzania’s economy significantly.

2.Production Capacity


– Aim: 10 million metric tons per annum (mtpa)

– Key Players: Equinor, Shell, ExxonMobil


– Total-led Area 1: 6.5 mtpa

– ExxonMobil-led Rovuma LNG: 12.5 mtpa

– Combined Capacity: 19 mtpa


While Tanzania’s individual project is larger, Mozambique’s combined projects exceed Tanzania’s production capacity. This indicates a broader base of operations and a potentially more diversified energy output in Mozambique.



– Final Investment Decision (FID): 2028

– Construction Duration: 3.5 to 5 years


– Area 1 Project:

– Commercial Operations Start: 2027 or 2028

– Rovuma LNG Project:

– FID: 2025


Mozambique’s projects are slightly ahead in their timelines, with one project expected to be operational around the same time Tanzania makes its final investment decision. This head start could provide Mozambique with an early mover advantage in the LNG market.

Strategic Insights.

– Economic Impact: The sheer scale of Tanzania’s project suggests a potentially larger economic impact if successfully executed, possibly creating more jobs and infrastructure development.

– Regional Influence: Tanzania’s project, being one of the largest in the region, could elevate its status as a major player in the energy sector. Mozambique, however, with its multiple projects, showcases a strong and diversified LNG portfolio, potentially making it a resilient energy producer.

– Market Dynamics: Tanzania’s later timeline might align with future market demands better, possibly securing higher prices or better contracts due to anticipated global energy needs.

Key Updates.

– Geopolitical Shifts: Any changes in regional stability, international sanctions, or trade agreements could affect the timelines and investment flows into these projects.

– Technological Advancements:  Improvements in LNG extraction and processing technologies might reduce costs or increase efficiency, impacting overall project economics.

– Environmental Considerations: Increasing global focus on sustainable energy might pressure both countries to adopt greener technologies or face international scrutiny, influencing project viability.


Tanzania’s LNG project stands out due to its massive investment and singular production capacity. In contrast, Mozambique’s combined projects offer higher total output and a head start in operations.


Both countries’ projects are poised to significantly impact their economies and the regional energy landscape, but they will need to navigate geopolitical, technological, and environmental challenges to realize their full potential.


Hussein Boffu runs a consultancy helping entrepreneurs achieve their goals through business planning and consultancy support. Would you like to reach out to him? Contact him via email at hussein.boffu@tanzaniapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.