Mozambique's Energy Industry

Mozambique: An Emerging Gas Powerhouse

Mozambique’s oil and gas sector was put on the world map with the discovery of major offshore gas plays beginning in 2010. Continued finds and investment have fast-tracked the nation towards potentially becoming one of the largest LNG suppliers globally, with operators TotalEnergies, Eni and ExxonMobil leading the charge through massive development of upstream and associated facilities. Mozambique has traditionally only produced gas from its onshore plays operated by South Africa’s Sasol, and the country is reliant on oil and fuel imports.

Mozambique has made progress in streamlining policies and breaking down bottlenecks to realise its immense potential. However, security issues and economic factors have held back large-scale development, with many projects put on hold.

Government involvement in hydrocarbons operations takes place through NOC Empresa Nacional de Hidrocarbonetos, which is a mandated stakeholder in all oil and gas operations. Upstream E&P concessions are handed out and overseen by state body the National Petroleum Institute, which has been active in carrying out seismic studies to expand the country’s investment potential.

Mozambique has immense hydropower potential thanks to the Zambezi River, whose latent generation capacity is estimated to be up to 20 GW, and the share of solar and wind in the country’s electricity generation mix been rising in recent years. Solar and wind offer opportunities to diversify the country’s energy mix and bring power to remote areas. In this context, the government aims to invest around USD 80 billion towards energy transition by 2050, with funds from both public and private players.

“Mozambique boasts vast energy resources with the potential to significantly impact both our nation and the region. Investments made here will not only contribute to Mozambique’s development but will also have a significant influence across Southern Africa,” Carlos Zacarias, Mozambique’s Minister of Mineral Resources and Energy told The Energy Year.