Mozambique is on its way in becoming the next big producer of natural gas


In a recent article on upstream energy, the financial site Seeking Alpha, described Mozambique as “the next juggernaut on the global liquefied natural gas stage."

Mozambique has somewhat attracted global investors in the gas field, such as ExxonMobil, which has already invested 2.8 billion U.S dollars in the Rovuma Basin last year; the Italian company ENI and China National Petroleum invested heavily in the same basin.

Since mid-2000, ENI has been exploring Offshore in Mozambique and was the company that sold the Rovuma stake to ExxonMobil, at this time the Italian company is already making profit.

The Rovuma Basin holds an estimated 85 trillion cubic feet of natural gas. Mozambique expects more exploration to double its reserves by 2030. It can be said that all partners are optimistic to make a generous profit in the long run.

Local markets tend to show strong demand, which could weaken with the amount of gas shipped abroad. According to an International Energy Agency report, global gas demand is expected to grow by about 1.6% by 2022.

The question that remains unclear is whether Mozambique is ready to deal with the wealth created by gas revenues. With a well-structured business model and realigned interests with the current reality, Mozambique will be a successful producer. With the discovery of gas wealth, conditions are created to improve the economic and social situation in Mozambique.