Government expects to collect around 1.3 billion meticais in revenue from LNG in Area 4 of the Rovuma Basin

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Government expects to collect around 1.3 billion meticais in revenue from LNG in Area 4 of the Rovuma Basin

3:33 CAT | 12 Dec 2022

FILE - For illustration purposes only. [File photo: Ministério dos Recursos Minerais e Energia - Mireme]

The Mozambican government revealed last week in parliament that it expects to raise around 1.3 billion meticais in revenue from liquefied natural gas (LNG) activities in Area 4 of the Rovuma Basin in 2023.

According to Max Tonela, the Minister of Economy and Finance, the plan is to ensure that gas revenues are managed with a focus on sustainable development for the benefit of all Mozambicans, in line with the approach proposed in the law of the Sovereign Wealth Fund.

In the detailed presentation of the proposal for the Economic and Social Plan and Budget (PESOE) for 2023, Max Tonela said that the PESOE was prepared in a particularly demanding context, given the international situation marked by the consequences of the war in Ukraine, and a national situation affected by the prevalence of terrorist action in Cabo Delgado and the increasing frequency of extreme events resulting from climate change.

READ: Mozambique: Government approves draft Sovereign Wealth Fund bill, and other measures – Watch

Given this context, the government intends to deepen the implementation of structural reforms that aim to reinforce macroeconomic stability, ensure the sustainability of the public debt, improve the state’s financial management and increase the institutional capacity for monitoring fiscal risks.

Minister Tonela said that the proposal presented also reflects the government’s commitment to promoting private investment, aiming at economic recovery and expansion, based on the implementation of the stimulus measures incorporated in the Economic Acceleration Package launched in August this year.

Source: Diário Economico