Mozambique is set to inaugurate its first liquefied petroleum gas (LPG) processing and production facility on November 13, marking a major milestone in the country’s energy sector.
Announcing the launch, Minister of Mineral Resources and Energy Estevão Pale on Wednesday said the facility will enable integrated production of LPG and light petroleum, expanding Mozambique’s refining capacity.
“This unit will allow us to reduce dependence on imports, increase fuel availability, and create new business and employment opportunities,” Pale stated at a press conference in Maputo.
The $1 billion project, located in Inhassoro district, Inhambane province, is expected to significantly reduce the nation’s reliance on imported cooking gas and bolster domestic fuel availability.
The plant is part of a broader Production Sharing Agreement (PSA) for gas and electricity, led by South African oil company Sasol, which already operates gas fields in Temane and Pande, both in Inhambane.
Cooking gas production to begin in 2026
Although the facility will be inaugurated in November, full-scale cooking gas production is expected to begin in early 2026, following commissioning delays linked to post-election unrest.
“The project is underway, it’s moving forward. There were delays due to the protests and other issues. But we expect that by the end of the year, early next year, the project will begin to move forward,” Pale said in our earlier report in July.
Sasol had previously indicated a possible September 2025 start, but revised timelines now point to early next year.
The plant will produce 30,000 tons of LPG annually, figures the Mozambican government expects to reduce the country’s bottled LPG imports by up to 70%.
The project will also produce 4,000 barrels of light oil per day, as well as supply gas to the 450MW Temane Thermal Power Plant (CTT), which is nearing completion.
Strategic importance of gas to Mozambique
The foundation stone for the Inhassoro cooking gas plant was laid by Sasol on March 27, 2022, and the project has since been hailed as transformative.
Sasol President and CEO Simon Baloy described it as “a wonderful project” that will serve both domestic energy needs and industrial power generation.
The PSA project aims to produce 53 million megajoules of natural gas per year, supporting Mozambique’s growing energy demands.
The LPG facility is one of several ongoing gas projects in the Portuguese-speaking nation, which ranks amongst Africa’s biggest natural gas reserve holders.
Over 100 Tcf of natural gas is estimated to be in the Rovuma Basin alone.
The Southern African nations currently host big international oil players like Eni, ExxonMobil and TotalEnergies, all with multibillion-dollar projects.
The progress of most of these projects has been stalled in recent years due to insecurity in the northern part of the country.
Through these foreign-led gas projects, the Mozambican government earned a record $1.967 billion from LNG exports in 2024, up 14% from the previous year.
Furthermore, Minister Pale has stressed the government’s intention to open the energy sector to private investment, particularly in fuel and electricity projects.
“We are creating space for private sector participation while ensuring better regulation and oversight by the State,” he said.
