The Mozambican government has set an ambitious target for the energy sector, with plans to increase annual production of Liquefied Natural Gas (LNG) fivefold by 2029. The aim is to reach 20 million tons per year, a significant increase on the 3.3 million tons recorded in 2024.
This forecast is part of the Government’s Five-Year Program (PQG) 2025-2029, a strategic document that will be submitted to Parliament for debate in the coming weeks. The plan reinforces the commitment to exploiting the vast gas resources of the Rovuma basin, off the coast of Cabo Delgado province.
Production growth will depend on three major projects that have already been approved, although only one is currently in operation. Coral Sul FLNG, led by Italian oil company Eni, is the only active one and expects to double its capacity over the next few years.
The other two megaprojects – Area 1, by TotalEnergies, and Area 4, by ExxonMobil – are at different stages of preparation. TotalEnergies’ project was suspended in 2021 due to insecurity in Afungi, but the French oil company is considering resuming activities, subject to the stabilization of security and the conclusion of a 15 billion dollar financing.
ExxonMobil, which is responsible for the Area 4 project, expects an annual capacity of 18 million tons of LNG and could speed up its final investment decision if there is progress in the TotalEnergies operation.
In addition, the government intends to boost hydrocarbon exploration, expanding the number of contracts from seven to 16 by 2029. This initiative is expected to boost new investments and consolidate Mozambique as one of the main players in the global natural gas market.
The economic impact of this strategy is reflected in the PQG’s macroeconomic projections. The Executive estimates that GDP per capita will rise from 662 dollars to 951 dollars by 2029, driven above all by LNG exports and the entry of foreign capital into the energy sector.
