How is the power sector in Mozambique set up?
Electricidade de Moçambique (EDM) is the state power utility. ARENE is the energy regulator. Hidroeléctrica de Cahora Bassa (HCB) runs the Cahora Bassa dam on the Zambezi, which exports much of its power to South Africa.
Gas projects are developed under concessions from the government, with the state company ENH as a partner.
Key projects and programmes
These are public, well-documented examples from the sources below. They show how the market works.
- Coral South floating LNG (Area 4), operated by Eni. It shipped Mozambique's first LNG cargo in November 2022 and can produce up to 3.4 million tonnes a year, all sold to bp under a long-term contract.
- Mozambique LNG (Area 1), led by TotalEnergies. Work stopped in 2021 after attacks in Cabo Delgado. In March 2025 US EXIM approved its $4.7 billion loan amendment, and in October 2025 the partners lifted force majeure.
- Rovuma LNG (Area 4), a planned onshore project led by ExxonMobil.
- Cahora Bassa hydro power station on the Zambezi.
How are projects financed?
LNG projects use project finance from export credit agencies such as US EXIM, UK Export Finance, and others, plus DFIs and commercial banks. Lenders rely on long-term LNG sales contracts with large buyers.
Power projects that sell to EDM depend on the PPA and government support. Some sell power across the region through the Southern African Power Pool.
What should investors, lenders, and off-takers check?
Common checks include:
- Security in Cabo Delgado and the project's security and human rights plans.
- The strength and length of LNG or power sales contracts.
- Concession terms, local content rules, and government approvals.
- Currency risk and access to foreign currency for local suppliers.
Where does Vektron Merchants fit?
This guide is public information about Mozambique. Vektron Merchants does not look for deals there. Vektron Merchants is a marketing agency for energy, commodities, infrastructure financing and industrial firms. We find buyers, offtakers, lenders and partners for companies in these four industries, and we secure meetings with the people who sign.
Frequently asked questions
Is Mozambique exporting LNG?
Yes. Coral South floating LNG has exported LNG since November 2022.
What is the status of Mozambique LNG?
The TotalEnergies-led project paused in 2021 after attacks in Cabo Delgado. US EXIM re-approved its loan in March 2025, and the partners lifted force majeure in October 2025. Check the latest project updates.
Sources
Related
- African Gateway
- How to invest in African infrastructure (all country guides)
- Export credit agency financing
- What is an off-taker?
General information, not investment, legal or tax advice. Facts are from the public sources listed and may change.