Significant natural gas discoveries off Mozambique’s northern coast in 2010 have raised expectations for the country’s economic prosperity. An International Monetary Fund report projects $500 billion in total revenue by 2045 and an average real GDP growth rate of 24% from liquefied natural gas exports between 2021 and 2025. Major energy companies such as TotalEnergies, ExxonMobil, and Eni are developing integrated LNG projects, while new upstream companies are entering the market, and gas-to-power developments near completion.
The Chinese oil company CNOOC, through its subsidiaries, acquired five offshore blocks in Mozambique last month. These blocks, owned in partnership with Mozambique’s Ministry of Mineral Resources and Energy and state-owned Empresa Nacional de Hidrocarbonetos (ENH), are located in the Save and Angoche offshore areas. Under the agreement, the initial exploration phase will last four years. CNOOC’s subsidiaries will operate and hold majority interests in the blocks, including significant percentages in each.
The 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. Finalized earlier this month, this acquisition grants ADNOC a share in 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 will have a combined capacity of over 25 mtpa.
Set to start operations in January 2025, the Temane Gas-to-Power Plant in Inhambane Province will produce 450 MW from the Pande and Temane gas fields for 25 years. Developed by independent power producer Globeleq, chemicals and energy company Sasol, and Mozambique’s state-owned Electricidade de Moçambique, the plant will boost Mozambique’s installed power generation capacity by 16%. It 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. The project, which began construction in March 2022, includes a 563-km transmission line to Maputo and is valued at $650 million.
ExxonMobil and partner Eni are set to make a final investment decision (FID) on the Rovuma LNG facility in 2025. This 18-mtpa facility will source gas from the Area 4 license in the offshore Rovuma Basin. ExxonMobil is leading the construction and operation of the onshore liquefaction facilities, while Eni oversees the nearby Coral FLNG project, which delivered its first cargo in November 2022.
South Africa’s national oil and gas company, PetroSA, expects to receive its first gas from ENH later this year, which will help address South Africa’s fuel shortages. After obtaining a gas trading license last March, PetroSA secured a sales agreement with ENH for an initial 2 petajoules of gas annually, with a potential expansion of up to 200 petajoules. 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.
Source: Energy Capital & Power
