Mozambique’s $20 Billion LNG Project: A Call for Peace, Stability, and Sustainable Growth Amid Global Energy Aspirations

African Energy Chamber Urges Unity and Development as Mozambique Prepares to Become a Global Energy Hub.

The delayed $20 billion Mozambique Liquefied Natural Gas (LNG) project is set for revival, promising to produce 13.1 million tonnes of LNG annually for domestic and international use. This ambitious endeavor has the potential to transform Mozambique into one of the world’s top energy producers, but its success hinges on fostering peace and stability, particularly in the wake of political unrest following the 2024 general elections.

The African Energy Chamber (AEC) has emphasized the critical need for political unity, sustainable development, and social cohesion as Mozambique enters a new era of energy-driven economic growth. "Peace and stability are essential for Mozambique to unlock its immense economic potential," stated NJ Ayuk, Executive Chairman of the AEC.

A Nation Poised for Prosperity

Since the discovery of significant natural gas reserves off Mozambique’s northern coast in 2010, the nation has drawn global attention. The International Monetary Fund (IMF) projects that Mozambique could earn $500 billion in revenues by 2045, with LNG exports contributing to an average annual GDP growth of 24% between 2021 and 2025.

Energy giants TotalEnergies, ExxonMobil, and Eni are spearheading massive LNG projects, while new players enter the market, driving further exploration and gas-to-power projects. The Coral Sul LNG platform and the Rovuma LNG facility are among the flagship developments expected to provide stable energy to over 2 million homes by 2030.

Regional and Global Impact

Mozambique’s emergence as an energy hub will ripple across the Southern African region, benefiting neighboring countries like South Africa, Tanzania, Zimbabwe, and Zambia. Additionally, its 2,700-km coastline along the Indian Ocean positions it as a gateway for global trade.

By harnessing LNG, Mozambique could supply high-quality, cost-effective energy to Asia, Europe, India, and the Americas, while attracting billions in foreign investment. The country is projected to account for 20% of Africa’s gas production by 2040, cementing its role in the continent’s energy future.

Challenges Ahead: Unrest and Instability

Despite its economic potential, Mozambique faces significant challenges, including political unrest, protests, and violence that erupted after the 2024 elections. Stability remains crucial to reassure international investors and ensure long-term project success.

"The confidence of the international community rests on a unified and secure nation," Ayuk said. "A commitment to peace will not only ensure the success of the multi-billion-dollar energy projects but also drive sustainable growth for Mozambique and the region."

Path to Transformation

Mozambique stands at a crossroads. One path leads to instability, undermining its growth trajectory, while the other offers a future as a trusted partner in the global energy sector. To realize its potential, Mozambique must prioritize:

• Political Stability: Building consensus among political factions to maintain democratic principles and avoid conflict.
• Sustainable Development: Ensuring that energy revenues translate into infrastructure, healthcare, education, and poverty alleviation.
• Unity and Social Well-Being: Addressing the concerns of local communities affected by resource extraction and fostering inclusivity in decision-making.

AEC’s Vision for Mozambique

The AEC has urged Mozambique’s government and opposition to strike a balance that ensures long-term prosperity. By leveraging its vast natural resources responsibly, Mozambique can position itself as a leading player in the global energy community.

As Mozambique revives its LNG projects, the stakes are high. A peaceful and stable environment will not only drive the success of these multi-billion-dollar ventures but will also pave the way for broad-based prosperity, benefiting its people and securing its place as an energy leader in Africa and beyond.