Following the discovery of significant natural gas deposits off Mozambique’s northern coast in 2010, expectations for the country’s economic prosperity have skyrocketed. An IMF report forecasts $500 billion in total revenue by 2045 and an average real GDP growth rate of 24% from LNG exports between 2021 and 2025. Major energy companies TotalEnergies, ExxonMobil and Eni are developing integrated LNG projects, while new upstream companies enter the market and gas-to-power developments approach completion.
CNOOC Acquires Five Offshore Blocks
Chinese oil company CNOOC has acquired five offshore blocks in Mozambique through its subsidiaries. Acquired last month, the blocks are owned in partnership with Mozambique’s Ministry of Mineral Resources and Energy and state-owned Empresa Nacional de Hidrocarbonetos (ENH) and are located in the Save and Angoche offshore areas. Under the agreement, the initial exploration phase is set for four years. CNOOC’s subsidiaries will operate and hold majority interests in the blocks, which include: S6-A (70%), S6-B (77.5%), A6-D (77.5%), A6-E (80%) and A6-G (79.5%).
ADNOC Acquires Stakes in Area 4
State-owned Abu Dhabi National Oil Company (ADNOC) has acquired a 10% interest in Mozambique’s Area 4 concession in the Rovuma Basin from Galp. The acquisition, finalized earlier this month, grants the company a share in the LNG production from the concession, which includes the operational 3.5 million ton per annum (mtpa) Coral South FLNG facility, the planned 3.5 mtpa Coral North FLNG development and the 18 mtpa Rovuma LNG onshore facilities. As a result, Area 4 features a combined capacity of over 25 mtpa.
Temane Gas-to-Power Plant to Operate in 2025
The Temane Gas-to-Power Plant in Inhambane Province is set to start operations in January 2025, producing 450 MW from the Pande and Temane gas fields for a period of 25 years. Developed by independent power producer Globeleq, chemicals and energy company Sasol and Mozambique’s state-owned Electricidade de Moçambique, the plant will increase Mozambique’s installed power generation capacity by 16%. The plant aims to provide electricity to over 1.5 million families by 2030, support industrialization efforts and enhance Mozambique’s role as an energy hub in southern Africa. Construction began in March 2022 and includes a 563-km transmission line to Maputo, with a total project value of $650 million.
FID Expected on Rovuma LNG in 2025
ExxonMobil and partner Eni aim to reach a final investment decision (FID) on the Rovuma LNG facility in 2025. The 18-mtpa facility will source gas from the Area 4 license in the offshore Rovuma Basin. Under the partnership, ExxonMobil is leading the construction and operation of the project’s onshore liquefaction facilities, while Eni is leading development of the nearby Coral FLNG project, which delivered first cargo in November 2022.
PetroSA, ENH Sign Gas Sales Deal
South Africa’s national oil and gas company PetroSA expects first gas from ENH to flow to the country later this year, addressing South Africa’s fuel shortages. With a gas trading license obtained last March, PetroSA secured a sales deal with ENH for an initial 2 PJ of gas annually, with the potential to increase to 200 PJ. The gas will be transported through the Republic of Mozambique Pipeline Investments Company, connecting the Temane and Pande fields in Mozambique to South Africa. PetroSA is also planning a joint venture with ENH to attract gas clients and trade offshore gas from Mossel Bay.
