Mozambique needs stability to advance projects - AEC

With plans currently underway to restart construction of the delayed $20 bill Mozambique LNG project, which has the potential to produce 13.1 mill tonnes of LNG for domestic use per year, there has never been a more important time to prioritise peace and stability in the country, the African Energy Chamber (AEC) said in a statement.

Following the country’s 2024 general election result, protests shook the country, leading to turmoil and instability.

Serving as the voice of the African energy sector and a strong advocate for the prosperity of Mozambique, the AEC said it fully supported the country’s government, and called for peace, stability and sustainable development, as Mozambique enters its new era of energy growth.

Since the discovery of significant natural gas deposits off Mozambique’s northern coast in 2010, expectations for the country’s economic prosperity skyrocketed. A previous IMF report forecast $500 bill in total revenue by 2045 and an average real GDP growth rate of 24% from LNG exports between 2021 and next year.

Integrated projects

Energy majors TotalEnergies , 埃克森美孚 and エニ are developing integrated LNG projects, while new upstream companies enter the market and gas-to-power developments approach completion.

Projects, such Coral Sul LNG, the Rovuma LNG facility and the Temane gas-to-power plant, have the potential to draw in billions of dollars in investment and revenue, while providing stable energy to upwards of 2 mill families by 2030.

Mozambique represents one of the most dynamic gas markets on the African continent, in which its vast offshore gas reserves could make it one of the top 10 producers globally and responsible for up to 20% of Africa’s production by 2040, the ACE said.

Geopolitically, these industrialisation efforts have the potential to benefit the wider southern African region and can transform the country into an energy hub for neighbouring countries, including Zimbabwe, Tanzania, Zambia, Malawi, Eswatini and South Africa.

In addition, a 2,700 km coastline on the Indian Ocean makes the country a gateway for vessel access, allowing Mozambique to specialise in efficient, global energy production while diversifying access to low-priced, high-quality goods from markets in Asia, India, Europe and America.

For Mozambique to realise its vast potential however, it is critical that the country remains firmly committed to political stability and sustainable development, the AEC added.

A peaceful and stable environment is the foundation upon which the international community can confidently build long-term partnerships, ensuring that the immense opportunities presented by the development of its natural resources and translate into tangible benefits for all.

“Peace and stability are essential for Mozambique to unlock its vast economic potential.

“As the country emerges as a global energy hub, the international community’s confidence hinges on a secure, unified nation. A commitment to peace will not only ensure the success of multi-billion-dollar energy projects but also secure long-term prosperity, driving sustainable growth for Mozambique and the entire southern African region.

“To do this, the government must find common ground and reach terms that translate to long-term beneficiation for the entire population of the country,” said AEC Executive Chairman, NJ Ayuk.

Mozambique stands at a crossroads; one path leads to further instability, while the other has the potential to transition the country into a trusted partner in the global energy community, the AEC stressed.?