The African Energy Chamber highlights Mozambique’s emerging significance in global gas supply amidst dwindling production in key African nations like Nigeria, Angola, and Equatorial Guinea.
In its “The State of African Energy 2024 Outlook Report,” the Chamber underscores Mozambique’s potential for considerable growth in liquefied natural gas (LNG) production, propelled by projects in the Rovuma basin.
The country is poised to escalate its export capacity from 3.4 to approximately 43.5 million tonnes per year by the next decade’s end, marking a historic surge.
The report indicates a worrisome decline in gas production forecasted for West Africa, particularly in Nigeria, Angola, and Equatorial Guinea, which currently contribute 85% of the region’s output. This figure is projected to decrease to 75% by 2030 and further to 60% by 2040, necessitating the entry of new African countries into gas production.
While natural gas production in Africa is anticipated to remain relatively stable in the next two years, the Chamber stresses the importance of exploiting current wells and expediting investment decisions on new discoveries to foster continental development.
The Chamber underscores the pivotal role of LNG not only in alleviating energy poverty but also in powering various industries.
Encouragingly, 12 African nations are now generating electricity using domestically produced or imported gas, signaling progress in the region.
Exploiting natural gas reserves in Mozambique’s Rovuma basin offers significant economic opportunities, with three development projects underway.
These projects, situated off the coast of Cabo Delgado province, include initiatives led by TotalEnergies and ExxonMobil/Eni consortia.
Despite challenges like the suspension of TotalEnergies’ project following security concerns in Palma in March 2021, Mozambique remains poised to capitalize on its abundant gas reserves.
Overall, Mozambique’s expanding role in LNG production stands as a beacon of hope for Africa’s energy landscape, promising economic growth and diversification for the continent.
