$50bn Mozambique LNG Pipeline Hinges on Overcoming Security Concerns

Mozambique's President Daniel Chapo has called on the country's private sector to take advantage of a pipeline of liquefied natural gas (LNG) projects worth around $50bn. The Rovuma Basin, located off Mozambique's northern coastline, holds an estimated 130-140 trillion cubic feet of recoverable natural gas.

The reserves have attracted several major energy companies, including Eni, TotalEnergies, and ExxonMobil, which are developing large-scale export projects. The projects already operating or under development represent more than 40 million tonnes per annum (mtpa) of LNG capacity.

However, the country's LNG ambitions have faced major hurdles. TotalEnergies' Mozambique LNG project has been affected by security concerns and has had to reapprove export credit support. The UK government and Dutch export credit agency Atradius announced plans to withdraw $1.47bn in export finance from the project due to security risks.

Despite these challenges, the government's wider strategy aims to increase domestic participation in projects expected to generate more than $4bn in contracts for local businesses.