African Energy Chamber: “Mozambique will play an important role in Africa’s gas supply” – Report

In a report entitled “The State of African Energy 2024 Outlook Report”, the organisation described that “the country is expected to increase its export capacity from the current 3.4 to around 43.5 million tonnes per year (mtpa) by the end of the next decade, the biggest increase ever”.

According to the document cited on Monday (25) by the newspaper Noticias, the entry of new African countries into gas production is essential to offset the decline in current wells.

“There is a worrying decline in production forecast for the coming years in West Africa, namely in Nigeria, Angola and Equatorial Guinea, which account for 85 per cent of the region’s gas production, which is expected to fall to 75 per cent in 2030, and a further five points in 2035, reaching 60 per cent in 2040,” it described.

According to the African Energy Chamber, “natural gas production in Africa is expected to remain relatively stable over the next two years, increasing slightly from 268 to 272 billion cubic metres in 2025. However, for the continent to develop and advance in this area, it is essential that producers continue to exploit current wells and that new discoveries reach the final investment decision as soon as possible.”

“As well as having the potential to solve the energy poverty that affects more than 600 million Africans every day, LNG is indispensable for many industries, and we are seeing a move in the right direction, with 12 African countries generating their own electricity with gas they produce or import,” it emphasised.

“Mozambique is among the countries bringing us positive news, due to the foreseeable increase in liquefied natural gas (LNG) production, driven by the projects under development in the Rovuma basin”

In the report, the organisation also stressed that the exploitation of natural gas will create a huge range of budgetary opportunities and increase the income of Africans, stimulating and diversifying the economy through long-term economic growth.

Mozambique has three development projects approved to exploit the natural gas reserves in the Rovuma basin, classified as among the largest in the world, all located off the coast of Cabo Delgado province.

Two of these projects are larger and involve channelling the gas from the seabed to land, cooling it in a plant and then exporting it by sea in a liquid state.

One is led by TotalEnergies (Area 1 consortium) and work progressed until it was suspended indefinitely after the armed attack on Palma in March 2021, when the French energy company declared that it would only resume work when the area was safe. The other is the still unannounced investment led by ExxonMobil and Eni (Area 4 consortium).

A third completed, smaller project also belongs to the Area 4 consortium and consists of a floating platform for capturing and processing gas for export, directly at sea, which started up in November 2022.