Between Afungi and the high seas, an energy frontier is taking shape — one that Mozambique has awaited for years. Discover the reserves, investments and progress of the projects at a time when hopes are (once again) being renewed around decisive investments.
Mozambique entered the geopolitics of gas with discoveries that, two decades ago, many would have considered unlikely: giant reserves in the Rovuma Basin, mainly concentrated in what would later be mapped as Area 1 and Area 4, offshore Cabo Delgado province. With these discoveries, a limited agricultural and extractive economy could move into the “top 10” gas exporters, with long-term economic, social and geopolitical implications. The central question is twofold: what exists (where it is and how much there is), and to what extent the monetization of these reserves can truly transform Mozambique’s economy — for better and for worse?
How much gas is there, after all?
Official estimates from the National Petroleum Institute (INP), consolidated in the latest reports (2022), point to reserves of approximately 179 trillion cubic feet (Tcf), with around 133 Tcf recoverable (reserves that are technically and economically viable to extract) across the provinces where active exploration exists (Inhambane and Cabo Delgado). In practical terms, Areas 1 and 4 account for most of this potential, positioning Mozambique among the countries with the largest gas resources on the continent and among relevant global players in terms of recent discoveries.
The Projects: Coral and Afungi
The largest-scale commercial discoveries are concentrated in the Rovuma Basin, in the extreme north of Mozambique. Area 1, whose onshore development (on the Afungi peninsula, Palma) has been the focus of the Mozambique LNG consortium (initially led by the American oil company Anadarko), brings together the Golfinho and Atum reserves. The technical and environmental dossier for Area 1 describes a complex of underground deposits connected by valves and subsea pipelines to the coast, where a large liquefaction industrial facility began construction. Work stopped in 2021 after an attack on the town of Palma by armed insurgents.
The Afungi industrial complex includes multiple cooling trains, where gas is converted into liquid form. The infrastructure also includes a jetty — a port structure where LNG carrier ships will load fuel for export to clients.
The Rovuma megaprojects involve tens of billions of dollars, one of the largest capital efforts ever launched in Africa. The promise of wealth is monumental — but so is the risk.
A new city is planned for Afungi, orbiting the industrial complex. Housing developments, social infrastructure, an airport (already built), roads and other facilities are outlined on paper, awaiting improved security conditions for construction to resume. Project documents detail recoverable resources of approximately 65 Tcf in Area 1 and a plan for at least two liquefaction trains, with expansion capacity up to 14 trains if a future industrial park producing other fuels from natural gas is developed.
Next door, Area 4, operated by the Mozambican Rovuma Venture (MRV — led offshore by Italy’s Eni and onshore by the American ExxonMobil), includes the Coral, Mamba and Agulha fields. Area 4 pioneered the FLNG (Floating Liquefied Natural Gas) concept: the Coral Sul floating platform began production in late 2022, proving that monetization (liquefaction and export) can take place offshore. The success of Coral Sul paved the way for Coral Norte, its twin platform, already under construction at Samsung shipyards in South Korea, scheduled to begin production in 2028. As for onshore investments — alongside the complex that Total began building — a final investment decision is still pending.
Billions at Stake, With Advances and Setbacks
The Mozambique LNG project (Area 1) was initially budgeted at around $20 billion, backed by one of the largest project finance agreements ever concluded in Africa. A 2020 document stated that financing was “fully secured,” allowing the project to move forward with contracts, dredging, foundations, roads and contractor mobilization. Infrastructure construction had begun but was suspended in 2021 following attacks by insurgent armed groups that have destabilized Cabo Delgado since 2017.
Coral Sul FLNG became the first platform to turn deepwater reserves into actual exports. More than 100 shipments demonstrate that the potential is concrete. The challenge now is to expand this successful route.
TotalEnergies, leader of the consortium, invoked the “force majeure” clause and, during years of interruption, faced global financial impacts in addition to security concerns. In recent months, the French oil company presented specific conditions to the Government for resuming the project, including additional financial guarantees and reinforced security measures. The Executive has promised to analyze the conditions but has not yet taken a position.
An Offshore Solution
The Coral Sul FLNG platform has established itself as the only fully operational project in the Rovuma Basin. In April 2025, the unit reached the milestone of 100 LNG export cargoes, after starting operations in November 2022.
Currently, one shipment is made per week.
INP data indicate that by July 2024, around 4.68 million tonnes of LNG had been produced and 4.66 million tonnes exported, corresponding to 67 shipments. Since then, with the milestone of more than 100 cargoes, cumulative production and export volumes have grown significantly, reinforcing Coral Sul’s role as a pillar of exportable gas. Meanwhile, the Coral Norte project received formal Government approval in April 2025, with an estimated investment plan of $7.2 billion. The new platform will have capacity to export around 3.55 million tonnes per annum (mtpa).
Gas as a Driver of Change
The country’s plans for Rovuma gas include the construction of a power plant, a refinery for producing liquid fuels (diesel and gasoline), and a fertilizer plant. For now, preliminary negotiations with potential investors — including indicative pricing discussions for gas utilization — have not yet reached conclusions. The future will tell, but the fuel is ceasing to be merely a subterranean reserve and is becoming a potential engine of economic transformation.
Fiscal revenues and balance of payments. LNG exports can generate substantial foreign currency revenues. Taxes, royalties and state participation could translate into hundreds of millions of dollars per year for decades, depending on gas prices and contract terms — but projects must move forward.
Foreign direct investment and infrastructure. Ports, roads, airports and transmission lines, if built, will become structural assets serving other sectors. The concept of an Industrial Development Zone (IDZ), envisioned for Afungi from the outset, encourages the establishment of energy-intensive industries, processing and logistics.
Domestic gas market and industrialization. Gas availability opens possibilities for electricity generation, fertilizer production and other manufacturing industries.
Direct and indirect employment. Construction and operation could create thousands of jobs, in addition to opportunities along supply chains, services and local commerce.
Beyond the reserves already identified, the Rovuma region continues to undergo seismic exploration and additional drilling. In this context, a phased development logic is being adopted to attract more operators and eventually host a true LNG industrial park.
Promises and Risks to Consider
The potentially adverse effects are not theoretical. Risks of rent capture, fiscal mismanagement, lack of transparency in contracts, rising regional inequality, pressure on sensitive ecosystems, community displacement and excessive dependence on raw material exports are real concerns. For gas to become an engine of inclusive development, a clear fiscal framework, transparency in revenue management, strong local content policies and robust environmental and social safeguards are essential — as outlined in the Environmental and Social Impact Assessment and the Environmental and Social Management Plan (EMP).
Text: Celso Chambisso • Photography: D.R.
