Mozambique’s natural gas sales reached $1.7 billion in revenue in 2023 – according to statistical reports from the Bank of Mozambique – marking an increase of 218% compared to the previous year.
The increase was driven by the operational start-up of the Coral Sul floating LNG (FLNG) plant in the Area 4 Block in the offshore Rovuma Basin, which delivered first LNG cargo in November 2022.
The Area 4 Block is operated by Mozambique Rovuma Venture, a JV between ExxonMobil, Eni and China National Petroleum Corporation.
Partners include energy corporation Galp, natural gas company Korea Gas Corporation and Mozambique’s parastatal Empresa Nacional de Hidrocarbonetos.
Seeking to expand gas extraction activities, Eni announced plans last January to develop a second FLNG vessel in Area 4 – Coral Norte – which could start production as early as 2027.
Meanwhile, ExxonMobil announced plans last year to leverage as much as 6 billion cubic feet of natural gas per day from the basin to boost the capacity of its planned Rovuma LNG terminal to 18 million tons per year (mtpa).
The project – which is currently awaiting FID – was initially set to produce 15 mtpa through the construction of two gas liquefaction trains and an onshore LNG plant.
Earlier this month, Mozambique’s Council of Ministers approved a decree governing the spending strategy of the country’s natural gas earnings, which are estimated to reach $91.7 billion in the coming decades.
According to the decree, 40% of state revenues from LNG will be allotted to the newly-established sovereign wealth fund, while the rest will be allocated to the national budget.
