Mozambique is buzzing with anticipation as President Daniel Chapo pledges the imminent resumption of liquefied natural gas (LNG) projects in the Rovuma Basin, off the coast of Cabo Delgado. Speaking at the Annual Private Sector Conference (CASP) in Maputo, Chapo announced that discussions with TotalEnergies are nearing completion, paving the way for the “Mozambique LNG” project to restart within a week.
The TotalEnergies project, a significant investment for the region, was halted in March 2021 following a terrorist raid on Palma. However, with TotalEnergies lifting the force majeure in late October, the government is working diligently to address remaining issues to benefit both Mozambicans and investors.
Chapo also revealed that ExxonMobil is poised to resume its Rovuma Basin project once TotalEnergies restarts, with a Final Investment Decision expected in June or July next year. Italian energy giant ENI has already greenlit a second LNG floating platform off the Cabo Delgado coast.
The combined investment for the ENI, ExxonMobil, and TotalEnergies projects amounts to a staggering 50 billion US dollars. President Chapo assured that the revenue generated from these LNG projects will be strategically invested in diversifying Mozambique's economy, focusing on agriculture, tourism, and infrastructure development, including the reconstruction of the crucial EN1 highway.
What This Means for South Africa
The resumption of these projects is significant for South Africa as well. Increased energy production in Mozambique could lead to greater regional energy security and potentially lower energy costs. Furthermore, infrastructure development in Mozambique could improve trade routes and strengthen economic ties between the two countries. The potential for job creation in Mozambique, both directly and indirectly, could also benefit South African businesses operating in the region.
Key Takeaways:
- TotalEnergies LNG project set to restart within a week.
- ExxonMobil to follow suit shortly after.
- $50 billion investment in LNG projects.
- Revenue to be invested in diversifying Mozambique's economy.
The future looks bright for Mozambique, and the ripple effects of these energy projects are expected to be felt throughout Southern Africa.