The Mozambican Petroleum Industry 2022

The Mozambican Petroleum Industry

Mozambique is largely reliant on oil and fuel imports due to lack of domestic refining capacity, and is a net importer of petroleum products. Upstream activities - including exploration and production of crude oil and natural gas - and the liquid fuel sector are dominated by multinational companies. Vast natural gas volumes have been discovered in offshore Area 1 and Area 4 blocks in the Rovuma basin, but investment inflows and the development of mega projects could be at risk due to security concerns in the northern province of Cabo Delgado.

Natural Gas Production

Natural gas is produced in the Pande and Temane fields in the Mozambique Basin. A floating plant for LNG, which arrived in Mozambique in January 2022, is the first offshore LNG project to come online in Mozambique, the first floating LNG facility to be deployed in deep waters in Africa and the third one in the world. The floating plant has a capacity to liquefy 3.4Mt of natural gas per year from subsea gas-producing wells.

Fuel Retail

Opportunities for fuel retailers are growing due to improving economic conditions in Mozambique. Fuel retail is dominated by the major international players. All petrol and diesel products for sale in Mozambique are imported in a centralised process with retail prices set by the regulator. Diesel and petrol prices are not subsidised by government.

Report Coverage

This report focuses on petroleum products from crude oil, natural gas, liquefied fuels and lubricating oils and greases, and the wholesale and retail trade of these products in Mozambique. It includes information on exploration and production sites, licensing rounds, notable players and developments.

There are profiles of 18 companies including multinationals such as TotalEnergies, Eni and Galp, South African group Sasol, government-owned Empresa Nacional de Hidrocarbonetos (ENH) and Petromoc and Matola Gas Company