Mozambique's energy challenges

Mozambique has substantial energy resources but still lacks widespread access to electricity. The government is focusing on expanding production capacity to address this gap.

Eni's new investment

Eni, an Italian oil company, is expanding its role in Mozambique's gas sector and is investing in local electricity production. It is seeking partners to build a 75 MW gas power plant in Temane, Inhambane province.

Project timeline and funding

The project, valued at 130 million USD, was announced in October 2025 by President Daniel Chapo. He emphasized Eni's commitment to sustainable development and improving energy infrastructure in the country.

Eni's existing operations

Eni has operated in Mozambique since 2006, managing Coral Sul, a floating gas liquefaction unit that began production in 2022. It also leads a 50% share in the Coral Norte project, a 7.2 billion USD initiative expected to produce 3.6 million tons of liquefied natural gas annually starting in 2028.

Electricity access in Mozambique

According to Electricidade de Moçambique (EDM), more than 30% of Mozambique's population lacked access to electricity in August 2026. While the new power plant will increase production capacity, achieving universal access by 2030 also depends on expanding the electrical grid.