The Petroleum Industry in Mozambique 2025

This report on the petroleum and gas industry in Mozambique provides information on oil and gas exploration and production, and petroleum products. It includes information on oil and gas fields and basins, reserves, licences, exploration projects, refinery expansion, and supply issues. There is information on notable players, corporate actions and developments, and influencing factors such as insurgencies, economic conditions, infrastructure challenges and environmental issues. There are profiles of 11 companies, including major multinational exploration and production companies ExxonMobil, Eni, and TotalEnergies, as well as major South African player Sasol, and other notable players such as Puma, Galp, Petromac, and Vivo Energy.

Challenges

Attacks by insurgents in the area near the Mozambique LNG and Rovuma LNG projects is preventing the resumption of work on the projects. Funds owed to them by the government and a lack of foreign currency are affecting some distributors’ ability to import petroleum products.

Introduction

• Mozambique has the third-largest proven natural gas reserves in Africa, after Nigeria and Algeria.
• Production from these reserves could transform it into a substantial liquefied natural gas producer and exporter.
• Numerous companies, including multinational oil companies, are involved in exploration and production.
• However, attacks by insurgents are preventing the resumption of work on several big projects.
• Large volumes of petroleum products are exported to neighbouring landlocked countries.
• A refinery is being planned that will enable Mozambique to reduce its imports of petroleum products and export locally-refined products.

Opportunities

Establishment of a planned refinery will allow the country to reduce its imports of petroleum products and export locally-refined products. Mozambique’s growing population and expected GDP growth will be drivers of increased demand for petroleum products. Rising production and exports of natural gas. Trade in petroleum products is forecast to increase amid higher demand in landlocked neighbouring countries.

Outlook

• Mozambique is forecast to become one of the world’s top 10 natural gas producers by 2040.
• Mozambique’s growing population and expected GDP growth are expected to drive increased demand for petroleum products.
• Trade in these products is forecast to increase amid higher demand in landlocked neighbouring countries.
• The establishment of a planned refinery will allow the country to reduce its imports of petroleum products and export locally-refined products.
• The IMF expects the economy to grow significantly by 2030 due to the start of large-scale liquefied natural gas production.

Trends

LPG use is rising in middle- and lower-income households, especially in areas close to service stations. Natural gas production is increasing, largely due to the Coral South FLNG facility entering production in October 2022, and it is expected to rise dramatically when the Mozambique LNG and Rovuma LNG projects enter production. Petroleum products and natural gas infrastructure, such as storage tanks and pipelines, is being expanded in response to rising consumption. The number of service stations is increasing. The role of natural gas in electricity generation has grown from less than 0.1% of the total in 2000 to 15.7% in 2022, and its share is expected to increase.