The financing will support the engineering, procurement and construction of the Afungi Peninsula-based project. (Image source: Adobe Stock)

An integrated liquefied natural gas (LNG) project in northern Mozambique has finally received a long overdue funding from the newly constituted board of directors of the Export-Import Bank of the United States (EXIM), which approved a direct loan of up to US$4.7bn that will cover export costs of US goods and services for the facility's development and construction

“I am pleased that in authorising this amendment the Bank finally fulfills the commitment EXIM made nearly six years ago to this Mozambique LNG project,” said the Bank's acting president and chairman Jim Cruse.

In a larger scale, the financing will support the engineering, procurement, and construction of the Afungi Peninsula-based project that comprises an onshore LNG plant, related facilities, and offshore activities. 

The Rovuma LNG Phase 1 project, which also belongs offshore Afungi Peninsula, is another prospective zone with natural gas liquefaction and export potential. Houston-based energy engineering company, McDermott International, has been handling the front-end engineering design (FEED) operations of the project. 

“LNG helps shape an entirely new era of energy solutions and McDermott plays a significant role in this global shift with more than 60 years of LNG experience,” said Rob Shaul, senior vice-president of McDermott's Low Carbon Solutions business. “McDermott is well established in Mozambique and can apply this knowledge and experience to continue the country's industrial, social and economic development.”

The Mozambique LNG project remains a vital investment for the US as it aims to diversify its international portfolio. 

Mozambique's LNG evolution has also warranted the rise of LNG technology companies in the region, such as Air Products. The company's dual mixed refrigerant LNG Process technology (AP-DMR) and equipment has been deployed at the Coral South floating liquefied natural gas (FLNG) plant, ensuring LNG production above 3.4 mn tons per year.

BP’s GTA project will boost global LNG supply (IMAGE SOURCE: BP)

A potential gas leak has been revealed from a well at the flagship Greater Tortue Ahmeyim (GTA) project, located offshore Mauritania and Senegal

Operator BP said that it had detected subsea gas ‘bubbles’ at one of its wells, A02, during a planned commissioning test at the project site, which straddles the border between the two West African countries.

The company has put in place a plan to rectify any issues but added that the incident would not disrupt output or create any significant environmental impact.

“We have a plan to stop the bubbles,” the company told Reuters in an email statement.

“As part of that plan we have mobilised specialised equipment and personnel to support the rectification efforts.”

BP is developing the mega project alongside US-listed partner Kosmos Energy and two minority stakeholders, Petrosen and SMH. 

Mauritania's oil ministry adviser, Ahmed Vall Ould Mohameden, was also cited by the news agency as saying that similar incidents can often occur at the start of production.

"Last week a plane carrying equipment to plug the leak was sent to the site to repair it."

The GTA project produced its first gas at the start of 2025 and is set to become a major gas exporter in the years ahead, producing 2.3 million metric tons of liquefied natural gas (LNG) a year during a first phase.

According to BP, it represents one of the deepest and most complex gas development projects yet in Africa, with gas resources located in water depths of up to 2,850 metres.

Gas from GTA Phase 1 is sent to the GTA floating production storage and offloading (FPSO) approximately 40 km offshore, where water, condensate and impurities are removed.

From there, the gas is transferred via pipeline to a floating liquefied natural gas (FLNG) vessel 10 km offshore, to be cryogenically cooled, liquefied and stored before being transferred to LNG carriers for export.

Some of the gas is also being allocated to help meet growing energy demand in the two host countries.

Read more:

African LNG projects set to benefit with natural gas seen as a bridge fuel in the energy transition

FLNG Gimi receives feed gas from GTA project offshore Mauritania and Senegal

BP's Greater Tortue Ahmeyim offshore Mauritania and Senegal sees first gas

Africa's LNG sector poised for growth (IMAGE SOURCE: Adobe Stock)

Africa’s glut of new energy projects will find a ready global market, with natural gas demand set to grow in the coming years, despite industry pressures to curb emissions

Natural gas remains the “crucial bridge in the energy transition”, according to analysts at Wood Mackenzie, suggesting that demand in key markets like Asia and Europe will continue to expand even in the face of renewable alternatives.

Major gas export projects in the planning or underway in Africa include vast LNG export schemes off Mozambique, Tanzania, as well as Senegal and Mauritania. 

While the world is increasingly turning to renewables, natural gas remains fundamental to meeting global energy needs and reducing emissions in the medium term, Wood Mackenzie states in a report (The Bridge: Natural Gas's Crucial Role as a Transitional Energy Source).

“Gas demand has surged by 80% over the past 25 years, now meeting almost a quarter of the world's energy needs,” said Massimo Di Odoardo, ,vice president of gas and LNG research at Wood Mackenzie.

“Its success lies in the scale of global resources, low production costs, ease of storage and dispatch, and comparative environmental advantages.”

Electrification, increasingly delivered by renewable power sources, can only move so fast, the report states, while the adoption of emerging low-carbon technologies, such as hydrogen, is too slow to achieve net-zero emissions by 2050. 

With coal still accounting for 30% of the world’s energy needs, shifting to gas as a transition fuel is a compelling option, the report adds.

Gas produces only half the carbon dioxide (CO2) of coal and 70% of oil when burned, and generates considerably less pollution, making it the cleanest fossil fuel option.

“In China and India…gas demand is still expected to grow by almost 100 bcm through to 2050 in the power sector,” said Di Odoardo.

Africa’s gas production is currently concentrated in Algeria, Egypt, Nigeria and Libya.

But the next decade will be characterised by the emergence of a stream of new exporters, notably Mozambique and Tanzania on the eastern coast, with easy access to Asian markets, and Senegal and Mauritania on the western flank, closer to Europe. 

In January 2025, BP announced first gas production from its Greater Tortue Ahmeyim (GTA) Phase 1 project off Senegal and Mauritania, part of a 2.3 million tonnes per annum (mtpa) LNG export scheme. 

Other new gas production is also anticipated in traditional producer states like Nigeria, Congo, Gabon and Equatorial Guinea.

While Africa’s glut of projects will still face pricing pressure from competitors, notably Qatar in the Middle East, as well as the USA and Australia, diversification of supply remains important to global gas buyers.

These include the emergence of local buyers too, with South Africa currently exploring options to import LNG at a proposed site in Richards Bay.

Read more: 

FLNG Gimi receives feed gas from GTA project offshore Mauritania and Senegal

McDermott leads Mozambique LNG expansion

Can the East African Ruvuma Rufiji gas basin help quench growing global LNG demand?

The ESIA approval will help advance pilot production activities. (Image source: Adobe Stock)

Invictus Energy Limited has announced that the Zimbabwe Environmental Management Agency (EMA) has approved the Environmental Social Impact Assessment (ESIA) for pilot production activities at the Cabora Bassa Project

Pilot production activities include the Eureka Gold Mine Gas-to-power Project and incorporates gas extraction, liquefaction, and transport from the Mukuyu gas field, as well as future extraction operations.

The approval provides a clear pathway for the commercialisation of gas resources from the Cabora Bassa Basin. Following the approval, the Company was issued with License No: L10000062291.

Invictus Energy managing director Scott Macmillan said, “The ESIA approval is a critical milestone for Invictus, and paves the way for the future development of the Mukuyu gas field and broader exploration license areas. We will now finalise pilot production planning, secure all necessary permits, and advance discussions with additional potential offtake partners.

Invictus remains committed to unlocking Zimbabwe’s gas potential and delivering long-term value to shareholders and the broader region.

I look forward to providing further updates as we advance these pilot production activities.”

Gas-to-power projects

The ESIA approval is a pivotal step towards the commencement of pilot production activities, including the Eureka Gold Mine gas-to-power project. This project is being developed in collaboration with Dallaglio (owner of Eureka Mine) and Himoinsa SA (onsite power generation provider to Eureka), leveraging Mukuyu’s gas resources to supply reliable and cost-effective power to the mine.

Invictus and Himoinsa SA have been actively engaging with various technology providers for gas processing, liquefaction, and logistics solutions to feed into the feasibility study, which is progressing in tandem. These engagements are aimed at identifying optimal technologies to maximise efficiency and commercial viability for the pilot production phase and subsequent large-scale development.

Initial Eureka gas-to-power project feasibility study results indicate a high look-through gas price exceeding US$10/GJ for gas-fired power generation, based on current grid tariff rates. This underscores the economic viability of the Mukuyu gas field as a strategic energy source for power generation in Zimbabwe and the broader region.

The ESIA expands on the initial 2019 assessment, which was one of the most extensive environmental studies ever undertaken in Zimbabwe. The 2019 study included rigorous field surveys and baseline measurements across multiple disciplines, including hydrology, ecology, environmental and archaeological assessments, hydrogeological and soil surveys, as well as socioeconomic and community consultations. Key stakeholders engaged during the assessment process included local leaders, relevant government ministries, and government extension offices.

The ESIA approval reinforces Invictus Energy’s commitment to responsible and sustainable resource development, ensuring compliance with stringent environmental and social governance (ESG) standards while advancing Zimbabwe’s domestic energy security.