Mozambique’s natural gas exports reached $443 million (€408.8 million) in the first quarter of 2024, marking a nearly 30% increase compared to the same period in 2023.
According to a report from the Bank of Mozambique obtained by Lusa, revenues from liquefied natural gas (LNG) exports in Q1 2024 stand in contrast to $340.9 million in Q1 2023.
The report attributes the revenue increase to a higher volume of exports, coinciding with the commencement of gas extraction and export from Area 4 of the Rovuma Basin.
This development occurred despite a 43.5% decline in the average price of natural gas in the international market.
Mozambique holds the third-largest natural gas reserves in Africa, estimated at 180 trillion cubic feet. The country currently has three approved development projects to exploit its vast Rovuma Basin reserves, which are among the largest globally, situated off the coast of Cabo Delgado.
In 2023, Mozambique’s natural gas sales totaled $1.726 billion, tripling the figures from 2022 and coming close to coal, which remains the country’s leading export commodity.
Earlier reports from the Bank of Mozambique indicated a remarkable 218% increase in natural gas exports in 2023 compared to the previous year, when exports amounted to $541.6 million (€499.2 million).
Remarkably, the total value of Mozambique’s natural gas exports in 2023 equaled the combined total from 2017 to 2022, exceeding $1.866 billion (€1.720 billion).
The surge in natural gas exports is primarily attributed to the operational start of Area 4 at the end of October 2022, which is currently the only approved project in the production phase.
This area is operated by Mozambique Rovuma Venture (MRV), a joint venture co-owned by ExxonMobil, Eni, and CNPC (China), which holds a 70% stake in the concession contract.
Eni, the concessionaire for Area 4, is also developing a second floating LNG platform, known as Coral Norte, aimed at increasing gas extraction.
A representative from Eni informed Lusa last month that a second FLNG is already under construction in South Korea, mirroring the one that has been operational since mid-2022 in the Coral Sul Area.
This initiative represents an investment of $7 billion (€6.3 billion) and is awaiting approval from the Mozambican government.
If the timeline remains on track, production from the Coral Norte FLNG platform is anticipated to begin in the second half of 2027, potentially preceding onshore projects, which face delays due to security issues linked to the armed rebellion in Cabo Delgado.
The Coral North platform will be located 10 kilometers north of Coral Sul, which began production in November 2023, marking the first project to capitalize on the extensive reserves of the Rovuma Basin.
