What ETG wants to build
ETG is proposing a urea facility in northern Mozambique sized at 1.5 million tons a year, a scale that would place it among Africa's largest. The company pegs the investment at $1.5 billion to $2 billion, with a go or no go to follow a feasibility study.
According to Niren Murugan, who serves as COO of ETG's Agri Inputs & Chemicals unit, "It's now the opportune time." He added that "Whilst there's still a lot of work to be done and still things to be resolved in terms of gas pricing and so forth, we are at the point where we really want to take this strategic direction."
Fuel source and timeline
ETG plans to buy gas from TotalEnergies' Mozambique LNG project to run the plant. That development carries a $20 billion price tag and is aiming for first exports by 2029. Construction activity officially picked back up in January, coming five years after rising insurgent violence had halted the project.
Under an agreement with the Mozambican government, the project's developers must make some gas available for domestic industry. TotalEnergies did not answer a request for comment sent by email right away.
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Why it matters for supply
Supply disruptions linked to the Iran war have lifted prices, and the February start of the conflict in the Middle East highlighted the world's heavy reliance on that area for fertilizer and energy. That backdrop has opened room to diversify production, and companies including Dangote Group and Indorama Corp. are moving ahead with additional fertilizer projects on the continent.
Murugan said the Mozambique project could boost the country's farm sector by ensuring a steady supply of nitrogen, while noting most output would be exported, including to neighboring markets. The need is pronounced: growers in sub-Saharan Africa apply less than one fifth the fertilizer per hectare used in developed economies, and the African Development Bank estimates the region imports about 80 percent of its crop nutrient.
The bottom line for investors
If the plant proceeds, it would tie a major new nitrogen node to Mozambique LNG and add another export stream for the region, while bolstering local availability for agriculture. Watch three markers from here: the feasibility study outcome, gas pricing terms with TotalEnergies, and Mozambique LNG's progress toward 2029 shipments.
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