With a second final investment decision (FID) in just two years, the local economy has positioned itself as a key player in the global gas and LNG market for years to come.

The latest FID on the US$20 billion LNG project is the largest in sub-Saharan Africa oil and gas. The Italy’s ENI is already moving ahead with its 3.4 million tpa floating LNG facility, which will draw on 5 TCF of gas in waters more than 2,000 metres deep with first gas due in mid-2022.

“With strong LNG demand growth out of Asia, now is Mozambique’s time,” said Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, as news broke of the Anadarko FID.

President Felix Nyusi has described it as: “one of the most important and transformational projects in the country’s history”, set to be a game-changer.


According to Wood Mac, from the early 2030s state revenue from LNG alone will reach US$3 billion per annum, single-handedly doubling today’s revenue as calculated by the IMF and World Bank. In addition, this is not the only mega-LNG project on the drawing board.

ExxonMobil’s Rovuma LNG project, which envisages a 15 million tpa two-train facility taking gas from its offshore area 4 block, is also lined up to take FID.

With FIDs signed, the projects are now moving from the planning into the implementation phase. Hundreds of contracts are expected to be tendered for the construction, infrastructure and services needed to build and develop the megaprojects.

More recently, on October 8th, Mozambique Rovuma Venture (MRV) Area 4 operator decided to move ahead with the midstream and upstream project activities of over US $500 million as initial investments.

These investments include activities such as the construction of the pioneer camp, the development of resettlement activities, the construction of the airstrip and access roads, as well as the start of detailed LNG facility engineering project.

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