Mozambique LNG 

Mozambique LNG (Area 1) – TotalEnergies

Facts & Figures

Location

• Geographic Setting: The project is located in the Cabo Delgado Province, northern Mozambique.

• Proximity: Afungi lies near the small town of Palma, on the Indian Ocean coast, with direct maritime access for LNG export.

• Infrastructure Built: Includes an LNG plant, marine terminal, airport, roads, and a new resettlement village for displaced local communities.

• Strategic Position: Close to Asia and Europe, making it a competitive LNG export hub.

Historical Background

• 2006–2010: U.S. company Anadarko Petroleum discovered huge offshore gas reserves in Rovuma Basin Offshore Area 1, particularly the Golfinho and Atum fields.

• 2010–2014: Exploration confirmed more than 60 trillion cubic feet (Tcf) of recoverable natural gas, among the largest gas discoveries globally in the last two decades.

• 2019: A Final Investment Decision (FID) was signed on June 18, 2019, in Maputo, marking the official launch of the Mozambique LNG project.

• 2020: TotalEnergies acquired Anadarko's share, becoming the operator of the project.

• 2021: Due to the insurgency in Cabo Delgado, TotalEnergies declared force majeure and suspended work, withdrawing staff.

• 2025 Outlook: Project expected to resume construction following improved security measures and re-approved financing packages, with first LNG production likely from 2026 onward.

Project Overview

• Operator / Lead Partner: TotalEnergies (26.5%).

• Other Stakeholders: ENH (15%), Mitsui (20%), ONGC Videsh (10%), Beas Rovuma Energy (10%), BPRL Ventures (10%), PTTEP (8.5%).

• Project Type: Onshore LNG plant at Afungi, supplied by offshore Golfinho and Atum gas fields.

• Design Capacity: Two trains with 13.1 million tonnes per annum (mtpa), expandable to 43 mtpa.

• Gas Reserves: ~60 Tcf (18 Tcf for first phase).

• CapEx: ~US$20 billion, one of Africa's largest-ever private investments.

Economic & Strategic Importance

• Global Energy Impact: Positions Mozambique among the top 10 LNG exporters worldwide once operational.

• Revenue for Mozambique: Expected to generate billions in annual revenue, strengthening fiscal and foreign exchange reserves.

• Jobs & Infrastructure: Thousands of local jobs created; major investments in housing, transport, and telecommunications in Cabo Delgado.

• Energy Security: A small portion of gas allocated for domestic use to power industries and households.

Challenges

• Security Risks: Insurgency in Cabo Delgado disrupted operations since 2021.

• Cost Overruns: Suspension increased financial burden; restart requires additional investment.

• Market Volatility: LNG exports highly sensitive to global gas prices.