Mozambique is on track to achieve record-breaking foreign direct investment of $5.88 billion in 2026, marking a substantial 22.6% increase compared to the previous year, with major developments in the natural gas sector driving the unprecedented growth.
According to supporting documents for the 2026 Social and Economic Plan and State Budget proposal currently set for parliamentary debate, this remarkable growth will be largely fueled by large-scale LNG projects in the Rovuma Basin, one of the world’s most significant gas reserves.
The momentum in FDI inflows is already evident. In the first quarter of 2025, investment more than doubled compared to the same period in 2024, reaching nearly $1.63 billion, with the mining and gas sectors leading the charge. Overall, foreign investment grew by 41.5% in 2024 and by 2% in 2023, reflecting renewed investor confidence in Mozambique’s resource-driven economy.
In a major development, oil giant Eni’s CEO, Claudio Descalzi, announced on October 2 that production from the Coral North floating LNG project is expected to begin within three years, positioning Mozambique as Africa’s third-largest natural gas producer.
Speaking at the signing of the Final Investment Decision for the $7.2 billion Coral North project in Maputo, Descalzi made a firm commitment: “We have initiated the schedule for 2028. This means we are starting now with the FID and, within three years, we will start production. This is a commitment—it’s not a dream.”
The FID for Coral North was signed by the Area 4 consortium, comprising Eni, Mozambique’s National Hydrocarbon Company, China National Petroleum Corporation, Korea Gas Corporation, and ExxonMobil’s subsidiary XRG, in the presence of President Daniel Chapo.
Eni, which already operates the Coral South FLNG platform, stated that Coral North will double Mozambique’s LNG output to seven million tonnes per annum, solidifying the country’s role as a key global supplier.
Mozambique currently has three approved mega-projects for developing its vast Rovuma Basin LNG reserves located off the coast of Cabo Delgado. TotalEnergies’ Afungi LNG project, valued at $20 billion with a capacity of 13 million tonnes per annum, is resuming operations after a security-related suspension. ExxonMobil’s Rovuma LNG project, valued at $30 billion with an 18 million tonnes per annum capacity, is awaiting a final investment decision. Eni’s Coral projects, combining South and North FLNG facilities, together target 7 million tonnes per annum of combined output.
Since 2022, Mozambique has earned approximately $235 million from 137 shipments of LNG and gas condensate exports from the Coral South platform, according to government data released in September.
These developments underscore Mozambique’s emergence as a major LNG producer and investment destination, with the potential to reshape the country’s economic landscape and strengthen its role in the global energy market.
Source: angolanminingoilandgas.com