Mozambique sets up committee to oversee Rovuma Basin LNG project revisions

Mozambique has created an inter-ministerial committee to oversee proposed amendments to development plans for major natural gas projects in the Rovuma Basin, as authorities tighten oversight of strategic investments in the sector.

The decision was approved during the sixth regular meeting of the Council of Ministers on March 3, according to the country’s oil and gas regulator, the Instituto Nacional de Petróleo (INP).

The committee will supervise the review of development plans for the Golfinho/Atum project in Area 1 and the Rovuma LNG project in Area 4, both located offshore in the gas-rich Rovuma Basin in the northern province of Cabo Delgado.

Authorities said the initiative aims to strengthen coordination among government institutions involved in assessing the technical, economic and legal aspects of these large-scale energy investments.

The committee will be chaired by the Minister of Mineral Resources and Energy and will include senior officials responsible for hydrocarbons, finance, economy, transport and logistics, labour, and land and environment.

Additional public institutions may also participate depending on the issues under review.

At the operational level, the INP will coordinate the evaluation of the proposed amendments, with support from other government bodies including the Tax Authority of Mozambique and the Bank of Mozambique.

The regulator said the mechanism is designed to ensure a comprehensive and coordinated assessment of proposals affecting strategic gas developments.

Mozambique is home to some of the largest natural gas discoveries in Africa, with the Rovuma Basin estimated to hold more than 100 trillion cubic feet of recoverable gas reserves.

The Golfinho/Atum development in Area 1 underpins the Mozambique LNG project, one of the country’s largest foreign investment ventures.

The project was initially developed by Anadarko Petroleum, which submitted the original development plan to the Mozambican authorities in the late 2010s.

The government approved the plan in March 2018, paving the way for the construction of an onshore liquefaction complex designed to export liquefied natural gas.

In 2019, TotalEnergies acquired Anadarko’s stake in the project and became its operator.

The neighbouring Area 4 block is being developed by the Mozambique Rovuma Venture consortium, controlled by ExxonMobil, Eni and China National Petroleum Corporation.

The consortium submitted its initial development plan for the Rovuma LNG project in 2018. The project is based on the gas resources of the Mamba offshore field and also involves the construction of onshore LNG processing facilities.

Authorities said the new oversight structure is intended to ensure that any revisions to the development plans are reviewed quickly while remaining compliant with Mozambique’s regulatory framework.

The move comes as the government reassesses project costs and timelines following delays and rising expenses.

At the time of the final investment decision in 2019, the Mozambique LNG project was estimated to cost about US$20 billion.

However, the project was suspended in April 2021 after insurgent attacks in the town of Palma in Cabo Delgado province forced the evacuation of workers and the declaration of force majeure.

Security conditions in the region have gradually improved since then, allowing the government and project operators to consider restarting development.

Rising costs have also prompted the review of project plans. Estimates published in 2025 suggested the total cost of Mozambique LNG could increase by around US$4.5 billion, reflecting inflation, security expenses and construction delays.

In late 2025, the Mozambican government granted TotalEnergies a concession extension of about four and a half years for the project to allow additional time for its completion.

Officials say the new oversight committee will help ensure that revised development plans remain technically sound, economically viable and aligned with national interests.

Mozambique hopes the development of the Rovuma Basin gas fields will transform the country into one of the world’s leading exporters of liquefied natural gas while generating significant revenues and investment in the coming decades.

Share This Article
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *