Mozambique is on the cusp of an economic revolution, with plans to restart the delayed $20 billion Mozambique LNG project, which is projected to produce 13.1 million tons of liquefied natural gas (LNG) annually for domestic and international markets.
The project, spearheaded by energy giants TotalEnergies, ExxonMobil, and Eni, is part of Mozambique’s broader strategy to harness its vast offshore gas reserves.
The International Monetary Fund (IMF) estimates that Mozambique could generate $500 billion in revenue by 2045 from LNG exports, driving an average real GDP growth rate of 24% between 2021 and 2025.
Yet, recent political unrest following the country’s 2024 general election threatens to derail these prospects. The African Energy Chamber (AEC), a leading advocate for energy-driven prosperity in Africa, has called for peace and stability in Mozambique.
“Peace and stability are essential for Mozambique to unlock its vast economic potential.A commitment to unity will not only ensure the success of multi-billion-dollar energy projects but also secure long-term prosperity for Mozambique and the southern African region,” stated AEC Executive Chairman NJ Ayuk.
The Mozambique LNG project represents a cornerstone of the country’s energy ambitions. Alongside other major initiatives such as Coral Sul LNG, the Rovuma LNG facility, and the Temane Gas-to-Power Plant, the project could provide electricity to over 2 million families by 2030.
These developments are expected to attract billions of dollars in foreign direct investment while positioning Mozambique among the world’s top ten LNG producers by 2040.
The country could account for up to 20% of Africa’s total LNG production, creating a robust energy hub for neighboring nations like South Africa, Zimbabwe, and Zambia.
Beyond regional benefits, Mozambique’s 2,700-km Indian Ocean coastline offers strategic access to global markets. Its LNG output is poised to meet rising energy demands in Asia, Europe, and the Americas, cementing Mozambique’s position as a critical player in global energy production.
However, this vision hinges on Mozambique’s ability to foster a peaceful and stable environment. Political tensions and sporadic violence threaten to undermine investor confidence and delay critical infrastructure development.
The AEC has urged the government and opposition parties to prioritize national unity, emphasizing that a stable Mozambique will unlock opportunities that benefit not only international stakeholders but also the local population.
“Investors seek certainty, and Mozambique has the potential to offer that if political stability is maintained,” said NJ Ayuk.
“The current crossroads presents a pivotal moment. Stability will drive progress, while instability risks squandering a once-in-a-lifetime opportunity.”
The potential for Mozambique’s LNG projects to transform the region is immense.
With proper governance, the country could spearhead industrialization across southern Africa, reduce energy poverty, and create thousands of jobs.
For Mozambique to realize this future, its leaders must rise above divisions and demonstrate a commitment to peace that reassures investors and uplifts its people.
The AEC’s call for stability is a rallying cry for Mozambique to seize its energy destiny.
By embracing unity and sustainable development, the country can transform its vast natural gas resources into a foundation for long-term economic growth, not just for itself but for the entire region. The choice is clear: stability paves the way for prosperity.
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