Mozambique seeks Exxon gas for 400MW Palma plant to boost domestic power

The state utility's push to tap LNG reserves for local generation highlights the challenge of monetizing Mozambique's domestic gas allocation amid security hurdles.

By Handelsavisen Newsroom · Automated 2026-07-16 14:27 UTC · 1 min read Last updated: 2026-07-16 19:22 UTC

Mozambique's state power utility, EDM, has entered direct negotiations with ExxonMobil to secure natural gas supplies for a proposed 400MW thermal power station in the Palma district of Cabo Delgado.

The project represents a strategic effort to utilize the country's domestic market allocation of gas, which is currently stranded due to the suspension of major liquefied natural gas (LNG) export projects in the region.

While the $20 billion LNG projects in Cabo Delgado face significant operational and security hurdles, the government is pivoting toward local power generation as an alternative revenue stream.

The development underscores the ongoing struggle to monetize Mozambique's vast gas reserves.

While the $20 billion LNG projects in Cabo Delgado face significant operational and security hurdles, the government is pivoting toward local power generation as an alternative revenue stream.

Sourcing gas from ExxonMobil, the operator of the Coral South and South Flank projects, would allow EDM to bypass some of the infrastructure bottlenecks that have plagued previous domestic supply attempts.

Security remains a critical variable for any new infrastructure in Cabo Delgado.