Report: Prospects for major gas projects off the coast of Mozambique and Tanzania are improving

Mozambique is facing a sharp increase in offshore gas production, according to a report by Westwood Global Energy Group.

Coral South, the first project to come on stream in East Africa’s Ruvuma-Rufiji gas basin, is expected to continue producing around 75,000 boe/d through 2027.

After that, Mozambique’s gas production could skyrocket, driven by the development of the Golfinho-Atum offshore field by TotalEnergies and Enis Coral Phase II.

Due to local conflicts in the province of Cabo Delgado, TotalEnergies applied force majeure to its 13 million tonnes per year liquefied natural gas project in Mozambique, delaying the originally planned start of production at the Golfinho Atum field to 2028, nine years after the permit was granted.

There was a domino effect at Exxon Mobil’s Rovuma LNG project because it planned to share certain facilities as part of the Mozambique LNG project. But Exxon Mobil has since taken steps to reduce costs, according to Westwood analyst Michela Francisco. The company has changed the design from the original proposal of two trains producing 15.2 million tonnes per year to an 18 million tonnes per year complex that will now be built using modular construction.

Exxon Mobil has since solicited tenders for a FEED contract and an EPCI option for the subsea-to-shore gas production facilities.