The Coral FLNG, Mozambique LNG, and Rovuma LNG projects are the three largest liquid natural gas projects in Africa. Gas production in this area has and will continue to devastate local communities and the region’s biodiversity. These projects are entrenching poverty and instability in Mozambique, which is already one of the poorest countries in the world.

Impacts on local communities

Construction of onshore facilities has led to the involuntary dispossession of traditional community lands without proper consultation based on free, prior, and informed consent or adequate compensation. The LNG development has resulted in the loss of livelihood of local fishing and farming communities, as people no longer have proper access to the sea or their farmlands. Increasing violence is also associated with the gas development. Due to a war fueled by the gas industry’s exacerbation of social and economic inequality since 2017, about 4,000 people have died and one million people have been displaced.  Violence in the Cabo-Delgado province is caused by insurgents as well as government troops, who have targeted locals, journalists, and civil society groups who are monitoring the gas development. Furthermore, reports in 2020 showed that two thirds of Mozambique’s COVID outbreaks  occurred in this area, making the gas region the epicenter of the country’s outbreak.

These direct impacts on local communities have resulted in outcry from local communities and groups. Affected communities have called for proper compensation, the replacement of any land that was destroyed or forcibly taken by developers, and for fossil fuel companies to conduct community consultations based on free, prior, and informed consent. There have been reports of illegitimate consultations conducted by Anadarko. Andarko is the U.S. company that was initially the lead operator of the Mozambique LNG project until it was bought by Oxydental Petroleum. Oxydental Petroleum then sold Anadarko’s Africa assets, including Mozambique LNG, to TotalEnergies. These consultations reportedly involved intimidation tactics posed by Mozambican security forces, which prevented local communities from freely and safely expressing concerns.  

Notably, the gas development will not improve local energy access. The majority of Mozambicans live in rural areas, where only 2.2% of the population is connected to the grid. There are no plans to build the required infrastructure needed to improve rural communities’ energy access. Not only will most of the gas be exported, but also, according to OpenOil’s financial analysis of Mozambique’s gas sector, the country will lose billions USD in tax revenue over the life time of the Mozambique and Coral LNG. Additionally, the Mozambique government is granting an 8% corporate income tax reduction to the businesses involved in the Coral FLNG during the first eight years of production. This is deeply concerning as such large investments could be spent on social programs or renewable energy development.

Environmental destruction

LNG development is predicted to spur grave negative impacts on the climate and the area’s biodiversity. To start, the Anadarko/Eni 2014 EIA showed that the LNG projects will increase the country’s annual greenhouse gas emissions by potentially up to 14%. For instance, the Mozambique LNG project alone is expected to produce 13 million tonnes of CO2 per year. According to this, the country would emit 104 MtCO2 by 2030, dramatically exceeding Mozambique’s Nationally Determined Contribution, which commits to reducing 76.5 MtCO2 during the period of 2020 to 2030.

These projects will also likely bring devastation to the terrestrial and marine biodiversity. The zone where these three projects are located encompasses an area inhabited by a large number of flora and fauna species, as well as marine ecosystems. The coral reefs off Northern Mozambique are some of the most species-diverse coral reefs in the region. Devastatingly, the gas development is within miles of one of these reefs, called Quirimbas Archipelago, a UNESCO-designated Biosphere Reserve.

The area’s sea grass beds also provide nursery grounds and foraging habitat for fish and turtles. The reefs are home to threatened species, such as five mollusk species and five marine turtles included in the IUCN Red List: loggerhead (near threatened), green (vulnerable), leatherback (vulnerable), olive ridley turtles (vulnerable), sei whales (endangered), and hawksbill (critically endangered). The Biosphere Reserve also comprises endangered land fauna, such as Hornbill birds, leopards, elephants, buffalo, and lions.

Legal Action Against Mozambique LNG

In December 2021, Friends of the Earth England, Wales, and Northern Ireland (FOE EWNI) with Justiça Ambiental/Friends of the Earth Mozambique took legal action against the UK government for approving funding of the Mozambique LNG project through its export credit agency, UK Export Finance. FOE EWNI claimed that “any new investment in fossil fuel extraction is inconsistent with the low emissions pathway under the Paris Agreement” and that the project was incorrectly judged as compatible with the Paris Agreement. In March 2022, one of the UK High Court judges ruled that the export credit agency was unlawful when making its decision to fund the project. However, there was disagreement between judges, and the Court of Appeal ultimately rejected the case in January 2023. One month later, the civil society groups lodged an appeal to the UK Supreme Court to continue its legal challenge against financing for this project.