Mozambique approves major LNG expansion in Cabo Delgado

Mozambique has approved a major expansion of its liquefied natural gas (LNG) export programme, advancing new projects in Cabo Delgado province, home to some of Africa’s largest natural gas reserves.

The expansion includes additional processing facilities, export infrastructure and partnerships with international energy companies, including TotalEnergies and ExxonMobil.

Officials say the new phase is expected to boost government revenue, create jobs and strengthen Mozambique’s position in the global energy market.

The development comes as energy companies resume operations in parts of Cabo Delgado following improvements in security conditions.

The $20 billion Mozambique LNG project, led by TotalEnergies, resumed full construction in January 2026 after a four-year suspension due to security concerns. The project is expected to produce its first LNG cargo in 2029.

Meanwhile, ExxonMobil is expected to make a final investment decision on its $30 billion Rovuma LNG project in the second half of 2026.

LNG has become Mozambique’s leading export, generating more than $1.5 billion in export earnings in 2025.

The government expects to receive about $77 million in LNG revenues this year, with part of the funds allocated to a sovereign wealth fund and the remainder supporting public spending and infrastructure development.

While security has improved in Cabo Delgado, authorities continue to monitor threats posed by armed groups operating in parts of the province.

SOURCE: Reuters