• Ukraine explores LNG imports from Mozambique after leaders’ talks
• War damage halves output, drives Ukraine’s shift to imports
• Mozambique LNG offers potential supply despite security, financing risks

Ukraine is exploring the possibility of importing liquefied natural gas from Mozambique, following talks on Monday between President Volodymyr Zelensky and his Mozambican counterpart Daniel Chapo.

The plan is seen as mutually beneficial: Kyiv would secure new energy supplies, while Maputo could receive Ukrainian support in security and technology.

The talks come as northern Mozambique, home to most of the country’s gas reserves, continues to face an Islamist insurgency.

They also take place as Ukraine’s gas infrastructure has been heavily damaged. Naftogaz, the state energy company, says its facilities have been hit more than 1,700 times by Russian strikes since 2022, cutting domestic production by about half.

Before the war, Ukraine met most of its energy needs through domestic output. That capacity has since declined, forcing the country to rely more on imports, especially during winter peaks. Ukraine has already begun diversifying its sources, including LNG imports from the United States.

Diversification already underway

Mozambique is emerging as another potential supplier. The country holds significant gas reserves under development through the Mozambique LNG project, led by TotalEnergies. The project targets annual output of 13 million tonnes and could strengthen Mozambique’s position in global gas markets.

However, the project still faces security risks. Cabo Delgado province, where it is located, has stabilized somewhat after the deployment of Rwandan forces, but those troops could withdraw. Rwanda has cited the lack of sustained European Union funding, raising doubts about the region’s stability.

Legal and financial challenges also persist. TotalEnergies faces legal proceedings in France over allegations linked to security operations in 2021, which have increased lenders’ concerns and prolonged uncertainty around the project.

Financing has become more complex after the United Kingdom and the Netherlands withdrew $2.2 billion in public support. Project costs have also risen to an estimated $24.5 billion, up from an initial $20 billion. TotalEnergies still aims to bring the project online by 2029.

Despite these constraints, much of the financing is secured and most future output has already been sold, mainly to buyers in Asia and Europe.

Talks between Kyiv and Maputo remain at an early stage, with no volumes or timelines agreed, but they highlight shared priorities: energy security for Ukraine and monetizing gas resources for Mozambique.

Olivier de Souza