Mozambique: Why 2021 is the best year to invest in the country
Updated: Mar 26
Mozambique has become one of the most-discussed oil and gas industries in Africa following its large discoveries and competitive terms. Most of the key global IOCs are actively involved or looking into getting involved in Mozambique, aiming to be part of one of the fastest growing LNG industries in Africa
The fastest growing LNG producer in Africa
Mozambique possesses tremendous natural gas reserves, being named as one of the largest proved natural gas reserve holders in Africa.
The country is estimated to hold over 100 trillion cubic feet, with the potential to discover more than double of that, during exploration.
Currently, Mozambique has two active onshore fields in Pande and Temane, operated by Sasol, with a proven reserve capacity of 2.6 TcF. These fields provide South Africa with natural gas, and will continue to do so for the next 25 years.
In the past four years, all eyes have turned to the Rovuma Basin, where major multinational companies have been investing to kickstart exploration and production. Total, Mitsui, ONGC, PTTEP, ENI, Exxonmobil, and more have already invested more than 20 billions in the area.
In October 2019, the Rovuma LNG project was announced, with the construction of two natural gas liquefaction plants on the way. The plants will produce more than 15 million tonnes of LNG annually.
Major contracts worth more than $15 billion are on the way
During August 2020, 68 new US companies signed contracts to supply services for Mozambique’s $23 billion LNG processing plant. Individual contracts surpassed $1.8 billion, and focus on the supply of equipment and services for engineering, procurement and construction.
Furthermore, Saipem and Subsea 7 signed a major contract for subsea work in Mamba.The European joint venture continues on-track for the Eni gas field that will feed the Rovuma liquefaction trains.
In addition to that, Total signed a security pact with the government of Mozambique, committing to invest more in the security and operation of its projects in the country.
With major IOCs and service providers investing in the country, and even more upstream and midstream contracts on the way, this is the best time to enter Mozambique and position your company as an industry leader.
Take part in Africa’s multi-billion opportunities
Meet with key government officials and find out the latest news on Africa's new LNG projects, exploration updates and upstream opportunities.
Discover new opportunities in Africa and how you can enter Mozambique's growing LNG market, in Africa's official online meeting space, the 2nd Africa Oil, Gas & Energy Summit on April 14th-16th.