Mozambique Oil & Gas: $50B LNG Projects, Coral South, Rovuma Basin
Mozambique is becoming one of Africa's most important energy producers. The Coral South FLNG facility is operational, producing up to 3.4 million metric tons of LNG per year. TotalEnergies' $20 billion Mozambique LNG project is developing the Golfinho and Atum natural gas fields. The Rovuma Basin offshore gas reserves are among the largest discovered in the last 20 years.
This is the complete guide to Mozambique's oil and gas sector and investment opportunities.
Mozambique's LNG Projects Overview
| Project | Operator | Investment | Status | Capacity | |---------|----------|------------|--------|----------| | Coral South FLNG | Eni | ~$7B | Operational | 3.4M tons/year | | Mozambique LNG | TotalEnergies | $20B | Restarting | 12.9M tons/year | | Coral North FLNG | Eni | ~$7B | Planned | 3.4M tons/year | | Rovuma LNG | ExxonMobil/Eni | ~$30B+ | Planned | 15M tons/year |
Total committed and planned investment: $50-60+ billion
Coral South FLNG: Africa's First Floating LNG
What Is Coral South?
Coral South is Eni's floating liquefied natural gas (FLNG) facility, located 80 kilometers offshore Mozambique in the southern part of Area 4 of the Rovuma Basin. It is Africa's first FLNG facility and the world's second-largest floating LNG unit.
Key Facts
- Operator: Eni (Italian energy major)
- Location: 80km offshore, Rovuma Basin Area 4
- Production capacity: Up to 3.4 million metric tons of LNG per year
- Technology: Floating production, storage, and offloading vessel
- First LNG cargo: Shipped in 2022
- Investment: Approximately $7 billion
- Significance: First development to produce from Mozambique's offshore gas reserves
How Coral South Works
- Six deepsea gas wells extract gas from the Coral reservoir
- Gas flows to the Coral Sul FLNG vessel via subsea pipelines
- The vessel processes gas into LNG through liquefaction
- LNG is stored in the vessel's tanks
- LNG carriers load directly from the FLNG vessel
- Ships transport LNG to global markets (primarily Europe and Asia)
Why Coral South Matters
Coral South transformed Mozambique from an energy importer to an energy exporter. The project:
- Proved that Mozambican offshore gas can be commercially produced
- Established Mozambique as an LNG-producing nation
- Created the infrastructure template for future projects
- Generated government revenue through gas royalties and taxes
- Created thousands of jobs in construction, operations, and services
Mozambique LNG: TotalEnergies' $20 Billion Project
Overview
Mozambique LNG is TotalEnergies' flagship project, developing the Golfinho and Atum natural gas fields in Offshore Area 1 concession. The project includes a two-train, 12.9 million tonnes per annum LNG facility onshore.
Key Facts
- Operator: TotalEnergies (French energy major)
- Investment: $20 billion
- Location: Onshore Afungi Peninsula, Cabo Delgado
- Fields: Golfinho and Atum gas fields, Offshore Area 1
- Capacity: 12.9 million tonnes per annum (two trains)
- Status: Restarting after security-related suspension
Security Challenges
The Mozambique LNG project was force majeured in 2021 due to insurgent attacks in Cabo Delgado province. TotalEnergies suspended operations to ensure worker safety. The project is now restarting with:
- Enhanced security arrangements
- Government military operations in the region
- International security partnerships
- Phased return of personnel
Economic Impact
When fully operational, Mozambique LNG will:
- Generate $25-50 billion in government revenue over project life
- Create 5,000+ direct jobs and 20,000+ indirect jobs
- Contribute 5-10% of GDP annually
- Fund infrastructure development
- Position Mozambique as a top-5 global LNG exporter
Coral North FLNG: Eni's Second Phase
Overview
Following Coral South's success, Eni is planning Coral North FLNG — a second floating LNG facility for the northern part of the Coral field.
Key Facts
- Operator: Eni
- Capacity: 3.4 million tonnes per year (matching Coral South)
- Investment: Approximately $7 billion
- Status: Planning/FID stage
- Significance: Doubles Eni's Mozambique LNG production
Rovuma Basin: The Resource Base
The Rovuma Basin offshore northern Mozambique contains one of the largest gas discoveries of the 21st century. Key deposits:
Area 1 (TotalEnergies)
- Golfinho, Atum, and Prosperidade gas fields
- Estimated recoverable resources: 75+ trillion cubic feet (TCF)
Area 4 (Eni/ExxonMobil)
- Coral, Agulha, and Mamba gas fields
- Estimated recoverable resources: 85+ trillion cubic feet (TCF)
Combined Rovuma Basin gas: 160+ trillion cubic feet — enough to supply Europe for over 30 years.
Investment Opportunities in Mozambique Oil & Gas
1. LNG Supply Chain Services
LNG operations require extensive local services:
- Catering and camp management
- Transport and logistics
- Fabrication and welding
- Environmental monitoring
- Security services
- Equipment maintenance
2. Gas-to-Power
Mozambique produces gas but imports electricity. Opportunities:
- Gas-fired power plants (500MW-2GW)
- Industrial gas distribution
- CNG for vehicles
- LPG for cooking (replacing charcoal)
3. Petrochemical Industry
Natural gas as feedstock for:
- Methanol production
- Ammonia/fertilizer manufacturing (directly benefits agriculture)
- Gas-to-liquids (GTL) synthetic fuels
- Plastics manufacturing
4. Infrastructure
LNG development requires:
- Port expansion (Palma, Pemba)
- Road and rail construction
- Airport upgrades
- Housing development
- Water and waste management
5. Local Content
Mozambican law requires local participation in extractive projects:
- Training and capacity building
- Local procurement programs
- Community development projects
- Environmental monitoring partnerships
6. Gas Monetization Technology
- Small-scale LNG for transport
- Virtual pipeline (LNG by truck to remote areas)
- Gas distribution networks
- Compressed natural gas (CNG) stations
How Mozambique's Gas Benefits Agriculture
The connection between LNG and agriculture is direct:
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Fertilizer production — Natural gas is the primary feedstock for ammonia-based fertilizers. Mozambique could produce fertilizer domestically instead of importing it.
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Gas-fired power for irrigation — Reliable electricity enables electric irrigation pumps, reducing rainfed dependency.
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Cold chain powered by gas — Gas-fired cold storage facilities reduce post-harvest losses.
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Revenue for agricultural investment — LNG royalties and taxes can fund the 10-year agriculture plan.
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Infrastructure spillover — LNG infrastructure (roads, ports, power) benefits agricultural logistics.
Risks in Mozambique Oil & Gas
| Risk | Severity | Mitigation | |------|----------|------------| | Security (Cabo Delgado insurgency) | High | Government military operations, international support | | Gas price volatility | Medium | Long-term offtake contracts | | Regulatory changes | Medium | New mining/metadata ownership rules, BIT protection | | Construction delays | Medium | Phased development, experienced EPC contractors | | Environmental concerns | Medium | EIA compliance, community engagement | | Resource nationalism | Medium-High | Local content partnerships, government equity stakes |
MBC's Role in the Energy-Agriculture Nexus
Maputo Bridge Capital sits at the intersection of Mozambique's energy transformation and agricultural development:
- Satellite monitoring — NDVI data monitors agricultural areas near LNG infrastructure
- M-Pesa disbursement — LNG supply chain workers receive payments via mobile money
- Agent network — Field agents in Cabo Delgado verify farmer projects near gas operations
- Marketplace — Agricultural products from gas-affected areas find markets through MBC
- Compliance — KYC/KYB for energy sector workers and suppliers
- Carbon credits — Gas operations can fund carbon offset programs through MBC's platform
The Bottom Line
Mozambique's oil and gas sector represents $50-60+ billion in committed and planned investment — more than 2.5x the country's GDP. The Rovuma Basin's 160+ trillion cubic feet of gas makes Mozambique one of the most important future LNG exporters globally.
For investors, the opportunities extend far beyond the gas fields themselves. LNG development creates demand for services, infrastructure, local content, and agricultural investment — the gas industry needs food, the government needs revenue diversification, and agriculture needs the infrastructure that gas development builds.
MBC provides the bridge between Mozambique's energy wealth and its agricultural potential — satellite monitoring, M-Pesa payments, agent verification, and transparent investment infrastructure.
Explore investment opportunities in Mozambique's energy and agriculture sectors at /investments or contact us on WhatsApp at +1 (516) 360-8323.
