Mozambique is rapidly becoming a major disruptor in the global energy landscape, with a booming oil and gas sector and a surge in renewable energy initiatives. The nation is transforming its economic fortunes and sending ripples across continents.Mozambique's prominence can be attributed to the discovery of over 1.5 trillion cubic feet of Liquefied Natural Gas (LNG) reserves. This significant finding has positioned the country as a critical player in the global energy market, drawing attention from major industry players and investors.The new-found LNG wealth has sparked unprecedented interest and investment in Mozambique's energy infrastructure. Leading multinational corporations are establishing a solid presence, contributing to developing state-of-the-art facilities to extract, process, and export LNG.In addition, the country is harnessing its abundant natural resources in renewable energy. Wind farms and solar installations are cropping up nationwide, diversifying its energy portfolio and contributing to a more sustainable future.According to Heldio Dimande, commercial manager at the Port of Maputo, the oil and gas sector is best described as vibrant, with Sasol's greenfield developments in Temane expected to launch the PSA Gas to Power plant early next year. "The Port of Maputo has supported this project with the handling of power units, turbines and other key equipment to assemble the plant in the central part of Mozambique, a project expected to yield over 450MW using LNG gas supply from Sasol wells in the Pande-Temane region," he told Freight News. "The port is also working on a wind turbine project with an Engineering, Procurement, Construction Management company (EPCM) expected to have its Final Investment Decision (FID) early in 2024. This will see the installation of a major wind farm in the southern region of Moza mbique."Dimande said the main challenge for the oil and gas sector was still security, particularly in the north of this country. "The insecurity risks are gradually easing due to military patrolling against the Islamic insurgency's sporadic attacks. Total Energies is expected to resume operations after a series of requests to the Mozambican government to ensure security is back in place. The town of Palma seems ready for relaunch for the works at Area 01 early in 2024. These gas fields will yield 13 Mtpa plus another 15 Mtpa at a second phase, with Exxon's FID expected a year later, most likely in 2025. Despite the challenges faced, ENI's Coral South has begun operations, with production expected to reach over 3 Mtpa of LNG offshore using the FLNG vessel."The surge in energy production is not only a boon for the energy sector but is also positively impacting the logistics industry in Mozambique. "Mozambique is a major disruptor, and all indications are that the country will become one of the top 10 gas producers in the world as its projects take off and are commissioned," said Dimande.
LNG wealth draws global interest
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