Mozambique’s LNG build out is creating a much broader investment opportunity
Written by Ian Krohn – Deputy-CEO and Partner of ThirdWay Partners
Deputy CEO & Partner | ThirdWay Partners
Mozambique is moving into a new phase of its LNG story. After years in which security concerns, political disruption and project delays dominated the headlines, the focus has finally shifted back towards LNG development. Four major LNG projects are advancing; procurement has accelerated but new local content laws are changing how foreign companies can participate.
A decade of demand is coming into view
Mozambique is on course to become one of the world’s ten largest LNG producers. Coral North and South are respectively under development and operational, Mozambique LNG is restarting, and Rovuma LNG is moving towards a final investment decision. While the projects are at different stages their EPC stages will largely overlap well into the 2030s.
This creates a long runway for companies supplying the LNG ecosystem. Public procurement plans point to more than 100 subcontract packages with approximately US$3 billion of local procurement expected in the short term. Procurement spans from the highly localizable (civil works, transport, and catering) to the more technical (specialized equipment, recruitment, and specialist technical services). For investors, the key question is which businesses can build the scale and standards required by the LNG majors while meeting increasingly stringent localization requirements.
Local content changes the route to market
Mozambique’s new local content law was passed in June 2026. The law creates three procurement routes:
exclusive local procurement;
preference for Mozambican suppliers; and
open competition where local supply is not feasible.
It also sets minimum local acquisition thresholds across a wide range of goods and services, from civil construction and professional services to catering, fuel and timber.
Some of the implementing regulations are still to be released and international companies will need additional clarity to understand their practical implications. The direction is however clear - foreign suppliers will need credible Mozambican partners, local staff and a greater share of local inputs. Joint ventures and partnerships are likely to become a more common route into the market.
This will create a second layer of opportunity. Established international service providers can bring technical know-how, systems and client relationships. Mozambican companies can bring local presence, market knowledge, labour and access to local procurement channels. Combining the two can create businesses that are more competitive than either side implementing alone.
Real constraints still limit investment
Mozambique is a complex place to invest. Public debt is high, forex availability is constrained and capital controls can make international payments and profit repatriation slow. Security conditions in Cabo Delgado and the wider political environment also remain important considerations.
Those constraints make transaction design and local operating capability especially important. Investors need to understand how capital enters the country, which contracts provide hard currency exposure, and how local financing can complement external capital. The upside is significant because the LNG build out is taking place in an economy where industrial capacity remains limited. Mozambique has a large resource base and a young workforce, yet much of its natural wealth is exported with limited processing. LNG investment can support wider growth in logistics, construction, services, and local manufacturing if suppliers are able to scale during this development stage.
What investors and international companies should do now
With billions of dollars of procurement expected to flow through local suppliers, international companies need to decide now how they intend to participate in the market. For companies already serving the global LNG industry, the priority should be to identify credible Mozambican partners, establish local operating structures and determine which parts of their supply chain can be delivered locally. Waiting for major procurement packages to be released will leave less time to build partnerships, local presence and the local financing required to compete effectively.
For new entrants into the market, the strongest opportunities sit in on-shore service delivery where more localized service provision is viable and where there is a large demand for partnerships with established local businesses that lack international expertise and technical track record. Investors should therefore be looking closely at local companies that, with capital and investment in technical capabilities, can scale.
The companies that position themselves early will have the strongest chance of securing procurement opportunities as spending accelerates. The immediate task is to identify where demand will emerge, identify credible local partners, and shore up the capital and capabilities that are required to build businesses that can serve the immediate LNG demand and hopefully the industrialization that follows.