EU Increases Security Funding in Mozambique

Mozambique. gas. Image credit_ Eni

Following the discovery of over 100 trillion cubic feet of natural gas resources in Mozambique, international majors announced development plans through the construction of large-scale LNG projects. These include TotalEnergies’ Offshore Area 1 of the Rovuma Basin, where the French-based company is constructing a 13 million ton per annum onshore LNG facility; ExxonMobil’s Rovuma LNG Liquefaction plant, set to utilize gas from the Mamba Complex of Offshore Area 4 of the Rovuma Basin and the Coral South Project and the Coral-Sul floating LNG facility developed by Italy’s Eni.

In 2021, however, TotalEnergies declared force majeure while ExxonMobil extended the timeline for a final investment decision, citing threats to security owing to the insurgency. The only project to remain on track was the Coral-Sul project, which expects first export in October 2022 following the introduction of first hydrocarbons to the platform in June 2022. 

However, with the funding – which the EU is looking at increasing fivefold – all three companies and their partners will be in a better position to resume operations. At a time when global demand for alternative gas supplies skyrockets as international markets attempt to reduce their reliance on Russian gas, Mozambique’s gas resources will be key for meeting demand and stabilizing prices.

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Onur Yilmaz

Onur Yilmaz

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