Maputo, May 6, 2026 (Lusa) - Mozambique's government expects to make 25% of liquefied natural gas (LNG) produced in the country available for the national market for domestic consumption.
This follows a proposed revision of the Petroleum Law, through which the government intends to benefit "fully" from operational revenues.
Parliament will discuss the proposal on Thursday.
The government establishes that petroleum development plans must include "a minimum quota of 25% of oil and gas, including produced LNG," allocated "exclusively for national consumption."
The government acknowledges that, after 10 years of implementing the current law, “despite progress in attracting investment that led to the development of major petroleum projects”, gaps remain.
These gaps require stronger state sovereignty over resources and greater capacity to fully capture revenues from petroleum operations.
The proposal calls for an urgent need to turn energy resources into drivers of economic growth, industrialisation and value chain creation for Mozambicans.
It also points to challenges facing the sector in the context of the global energy transition.
To “ensure a new dynamic that safeguards the state’s strategic interests”, the proposal introduces a binding agreement between the holder of petroleum operation rights and existing rights holders or affected local communities in the project area.
It also requires companies to submit regular reports on compliance with human rights.
In developing petroleum operations, the revised law aims to “secure greater gains for the state” through regulatory measures.
These include obligations related to gas flaring and penalties for concession holders that leave areas undeveloped for long periods.
The changes also aim to boost industrialisation by allocating LNG at competitive prices to the domestic market and requiring that 100% of condensate (light hydrocarbons separated from gas) be supplied locally.
The proposal also sets a mandatory minimum participating interest for the state’s exclusive representative and introduces a “free carry” financing obligation until production begins, reducing financial exposure and risk in petroleum operations.
The document states that these measures “will strengthen national sovereignty and promote economic independence.”
The proposal highlights "strengthening the role of the National Petroleum Institute (INP) by granting it regulatory authority status."
This gives the INP sanctioning and inspection powers, as well as greater control over recoverable costs.
The revision also establishes a "hybrid regime for 'force majeure' with predictable deadlines and state safeguards against cost liability."
Mozambique has three approved development projects to exploit the Rovuma basin natural gas reserves, which rank among the world's largest, off the coast of Cabo Delgado.
Eni's Coral Sul project is the only one operating since 2022. Last October, the government approved an investment in a second floating extraction platform, Coral Norte.
The $7.2 billion investment will double production to 7 million tonnes per annum (mtpa) of LNG starting in 2028.
After a four-year suspension, the $20 billion (€17.4 billion) Mozambique LNG (Area 1) project, operated by TotalEnergies, officially resumed in January and expects 13 mtpa from 2029.
ExxonMobil’s $30 billion (€26.1 billion) Rovuma LNG (Area 4) project follows with 18 mtpa expected after 2030, with a final investment decision due in 2026.
PVJ/LYT // ADB.
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