The world of LNG has facts that are well known and others less so. A journey from A to Z helps to understand what not everyone knows about this strategic resource and the market “jargon.”
Talking about LNG in Mozambique often means entering a territory dominated by acronyms, astronomical numbers, and technical concepts that the average reader may not grasp.
E&M sought to organize the universe of LNG (both Mozambican and global) letter by letter, in a clear way. A small window to understand how this resource is formed, transformed, transported, and how it may shape the country’s future.
Afungi
The Cabo Delgado peninsula where the industrial complex for liquefaction and export of gas discovered about 40 kilometers offshore in the Rovuma Basin, Indian Ocean, is to be built. Located in Palma district, the peninsula was chosen as the base for the Mozambique LNG consortium project, led by TotalEnergies, due to its proximity to the reserves and access for LNG carriers.
Rovuma Basin
The heart of Mozambican gas, hosting some of the largest natural gas reserves discovered in the world in the 21st century. Located in the far north of the country, it is estimated to contain over 100 trillion cubic feet of natural gas. The depth, quality, and scale of the reserves justify the interest of major international operators.
Coral (South and North)
Coral is the name given to the gas reserve that marked a turning point in Mozambique’s energy sector. It is from here that the country debuted as an LNG exporter. Located in Area 4 of the Rovuma Basin, exploitation began in 2022 through the Coral South floating platform, led by Eni. The Coral North platform (under construction) represents the next phase, with higher capacity and new investments still being defined.
DFI – Final Investment Decision
The key moment when a project moves from plan to execution, with contracts signed. At this stage, promoters confirm costs, secure financing, finalize long-term sales contracts, and formally authorize the construction of infrastructure — liquefaction trains, terminals, ships, and pipelines. Without a DFI, there is no project.
“Offshore” refers to the exploration and production of natural gas in maritime areas. In Mozambique, the main LNG projects rely on reserves located offshore in the Rovuma Basin, where extraction requires advanced specialized drilling technology.
EPC – Engineering, Procurement and Construction
A term for the contract model used in major LNG projects. In Mozambique, the EPC phases of the Mozambique LNG project were executed by the Saipem, McDermott, and Chiyoda consortium, while the Coral South FLNG project was handled by Samsung Engineering, JGC Corporation, and Technip Energies.
Offshore
Refers to exploration and production of natural gas in maritime areas. In Mozambique, main LNG projects rely on offshore reserves in the Rovuma Basin, requiring advanced drilling technology.
Methane leaks
Throughout the LNG chain (transport, liquefaction, storage), methane leaks are a major environmental challenge. While natural gas emits less CO₂ than coal, small methane losses can cancel this advantage, as methane is up to 80 times more harmful to global warming over 20 years.
GTL – Gas-to-liquids
A technology that converts natural gas into liquid fuels, such as diesel, kerosene, or naphtha. Although not yet widely applied in Mozambique, GTL represents an alternative to add value to gas, converting Rovuma Basin reserves into higher-value industrial products.
Gas hydrates
Crystalline structures formed when methane or other hydrocarbons are trapped in water networks, common in deep-sea environments. Not commercially used in Mozambique, they represent one of the largest potential gas reserves worldwide, attracting scientific and technological interest.
Infrastructure
Refers to the facilities, equipment, and systems needed to extract, process, liquefy, transport, and export natural gas. In Mozambique, infrastructure includes offshore drilling in the Rovuma Basin, subsea pipelines leading to Afungi, onshore liquefaction units of the Mozambique LNG project, and the Coral South FLNG.
Joule
The unit of energy used to quantify the energy content of natural gas and LNG. Each cubic meter contains a specific amount of joules, essential for calculating sales contracts, transportation, and conversion to electricity or heat.
Key players
Companies, institutions, and governments that make major LNG projects possible. In Mozambique, notable operators include TotalEnergies, Eni, and ExxonMobil, EPC consortia responsible for infrastructure construction, and development financial institutions (DFI) that enable investment.
Long-term contracts
Contracts securing LNG sales for periods up to 25 years, providing financial security to investors and predictability to buyers. Mozambique LNG and Coral South FLNG have signed long-term contracts with Asian companies, especially in Japan, South Korea, and China.
Mtpa – million tonnes per annum
Unit measuring annual LNG production capacity. Each liquefaction train has a specific mtpa capacity, determining the volume of gas that can be exported. Mozambique LNG plans 12–15 mtpa, while Coral South FLNG produces 3.4 mtpa.
LNG carriers
Specialized ships that enable global LNG trade. Equipped with cryogenic tanks that maintain gas at about -162 °C, these ships reduce gas volume by about 600 times, facilitating transport between continents. In Mozambique, they connect projects to Asian and European markets. Gas is regasified at the destination for pipeline distribution.
Offshore and onshore
Offshore: exploration and production at sea. Onshore: processing units located on land. Mozambique’s main LNG projects extract offshore gas and process it onshore in Afungi.
Pipeline
Pipelines are the backbone of gas transport, linking production fields to liquefaction complexes and export terminals. In Mozambique, subsea pipelines connect Rovuma Basin offshore fields to Afungi onshore units, ensuring continuous and safe gas flow.
Amid acronyms and enormous figures, Mozambican LNG becomes clear. From the Rovuma Basin to Afungi, this guide explains how the gas is formed, explored, liquefied, and transported — and how it can shape the country’s economic future.
Qatar
One of the world’s largest LNG producers and exporters, serving as a global technological, commercial, and contractual reference. The country has large processing complexes, port terminals, and LNG carriers, securing long-term contracts in Asia and Europe.
Royalties
Payments made by gas operators to the producing government for the right to exploit reserves. Mozambique LNG and Coral South FLNG generate significant state revenue through royalties.
Spot market
LNG trading outside long-term contracts, with quick delivery and market-determined prices. Mozambique’s main projects operate under long-term contracts but may sell a portion on the spot market, taking advantage of higher prices and adjusting export volumes.
Trains (liquefaction lines)
Modular units that cool natural gas through piping until it becomes liquid. Each line has its own capacity, usually in mtpa, determining annual production volume. Mozambique LNG in Afungi has multiple trains; Coral South FLNG operates a floating unit.
Upstream
Exploration and production of natural gas, including well drilling, offshore extraction, and initial transport to processing or liquefaction units. This phase determines gas quantity, quality, and supply continuity, forming the basis for the LNG value chain from subsurface to global markets.
Volatility
Refers to LNG price fluctuations in international markets due to factors like weather, geopolitical crises, demand growth, and supply changes. For producers like Mozambique, volatility can mean higher-than-expected revenues in global shortages but also significant risks when prices fall.
Winter demand
The sharp increase in natural gas consumption during cold months, especially in Europe and Northeast Asia, where gas is crucial for heating and electricity. Seasonal peaks affect prices, shipping routes, and market competition, creating strategic opportunities for exporters.
Yield
The output obtained from converting natural gas into commercial products, considering losses, liquefaction efficiency, and utilization of valuable hydrocarbons like ethane, propane, and butane. Optimizing yield is key for maximizing Rovuma Basin project revenues.
Zone of influence
Geographical, social, and economic areas directly affected by large energy projects. In Mozambique, the LNG projects’ zone of influence includes Palma, Mocímboa da Praia, and the Afungi peninsula, impacting resettlements, employment, and public services.
Text: Celso Chambisso • Photo: D.R.
