Exporting LNG from Mozambique to the US

Mozambique is emerging as a significant player in the global liquefied natural gas (LNG) market, with vast offshore reserves in the Rovuma Basin positioning it as a future top-10 LNG exporter. For US buyers seeking diversified and reliable natural gas sources, Mozambique offers a strategic alternative amid tightening global supply chains. This page provides a comprehensive guide for African exporters and US importers navigating the trade of Mozambican LNG to the United States, covering production context, tariff preferences under the African Growth and Opportunity Act (AGOA), buyer channels, certifications, logistics, and how Coppermont facilitates entry.

Commodity Overview: Grades, Volumes, and Major Producers in Mozambique

Mozambique's LNG resources are primarily located in the deepwater Area 1 and Area 4 blocks of the Rovuma Basin, estimated to hold over 100 trillion cubic feet (Tcf) of recoverable natural gas. The country is developing both onshore liquefaction plants and floating LNG (FLNG) facilities. The flagship Coral South FLNG project, operated by Eni and its partners (including ExxonMobil and CNPC), began production in late 2022 with a capacity of 3.4 million tonnes per annum (MTPA). The larger onshore Mozambique LNG project (Area 1, led by TotalEnergies) is currently on force majeure but targets over 13 MTPA once resumed. LNG grades from Mozambique are typically low in sulfur and high in methane content, meeting international specifications for spot and long-term contracts. Current production is primarily exported to Asian and European markets, but US offtake is growing as buyers seek portfolio diversification. Major producers include Eni, ExxonMobil, TotalEnergies, and the national oil company Empresa Nacional de Hidrocarbonetos (ENH).

AGOA Preferential Access and US Tariff Treatment

Mozambique is a beneficiary country under AGOA, which grants duty-free treatment for most products exported to the United States. However, LNG is classified under Harmonized Tariff Schedule (HTS) subheading 2711.11.00 (liquefied natural gas). Under AGOA, LNG is not eligible for duty-free treatment because it is a petroleum product covered by the 'competitive need limitation' provisions and is excluded from the general system of preferences (GSP) for energy minerals. The US most-favored-nation (MFN) tariff rate for LNG is zero percent, meaning that AGOA preferences are not needed for tariff-free access—LNG already enters the US duty-free under MFN. Nevertheless, AGOA provides broader trade benefits for Mozambique, enhancing its overall export framework and reducing non-tariff barriers through trade capacity building. Exporters should verify that their LNG meets US Customs and Border Protection (CBP) rules of origin if claiming AGOA benefits for associated goods.

US Buyer Types and Import Channels for Mozambican LNG

US buyers of LNG include large utility companies, gas-fired power plants, industrial users (e.g., fertilizer and chemical manufacturers), and trading firms that resell on the spot market. Major US importers of LNG are companies like Cheniere Energy, Sempra Infrastructure, and Freeport LNG, which operate regasification terminals along the Gulf Coast and East Coast. However, given the US is a net exporter of natural gas, imports of Mozambican LNG are typically for specific price arbitrage or supply diversification needs. Buyers may enter into long-term sale and purchase agreements (SPAs) or spot cargo purchases through brokers and trading desks. US import channels require LNG to be delivered FOB (free on board) or DES (delivered ex-ship) to regasification terminals such as those at Cove Point (Maryland), Elba Island (Georgia), or Sabine Pass (Louisiana). Mozambican exporters must secure capacity at these terminals or arrange for virtual pipeline services.

Certifications, Standards, and Documentation Required

Exporting LNG from Mozambique to the US requires compliance with US Coast Guard (USCG) regulations, the Federal Energy Regulatory Commission (FERC) terminal standards, and the International Maritime Organization (IMO) codes for LNG carriers. Key certifications include: (a) a Gas Quality Certificate verifying methane content, calorific value, and impurities (e.g., CO2, H2S) per contract specifications; (b) an International Maritime Dangerous Goods (IMDG) Code compliance certificate for the vessel; (c) a Certificate of Origin under AGOA or MFN; (d) a Phytosanitary Certificate is not applicable for LNG; (e) a Bill of Lading and commercial invoice; and (f) a US Customs entry (CBP Form 7501). Exporters should also provide a Material Safety Data Sheet (MSDS) and ensure the cargo meets the American Society for Testing and Materials (ASTM) D4784 standard for LNG. Additionally, the US Environmental Protection Agency (EPA) requires reporting under the Greenhouse Gas Reporting Program for imported LNG.

Logistics from Mozambique to US Ports

LNG from Mozambique is typically shipped from the Coral South FLNG terminal (offshore Cabo Delgado) or future onshore terminals near Palma. The voyage to US Gulf Coast ports takes approximately 25–30 days via the Cape of Good Hope and across the Atlantic. Vessels used are large LNG carriers (Q-Flex or Q-Max size, around 145,000–210,000 cubic meters capacity). Key logistics considerations include: (a) securing berthing slots at US regasification terminals, which are often congested; (b) compliance with the Jones Act for any domestic transport within the US (not applicable for direct imports); (c) insurance coverage for cargo during transit; and (d) customs clearance at the first US port of entry. Mozambican exporters should work with experienced freight forwarders specializing in LNG to manage documentation and terminal booking.

Coppermont Advisory

Coppermont provides end-to-end advisory for Mozambican LNG exporters entering the US market. Our services include AGOA compliance audits, US buyer sourcing, contract negotiation support, and logistics coordination. We help navigate FERC regulations, terminal access agreements, and customs clearance. For US importers, we offer supplier verification, quality assurance, and market intelligence on emerging LNG supplies from Africa. Contact our trade advisory team to start your export journey.