Mozambique: Gas exports in H1 up 33% YoY to US$901 million

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Mozambique: Gas exports in H1 up 33% YoY to US$901 million

4:10 CAT | 09 Dec 2024

File photo: Eni

Mozambique’s natural gas exports totalled $901 million (€852.3 million) in the first half of the year, an increase of 33% compared to the same period in 2023.

“The increase in revenues from natural gas is explained by the increase in the volume exported, associated with the start of exploration and export of gas from area 4 of the Rovuma basin, in a context in which the average price in the international market fell by 28%,” reads a report from the central bank.

Natural gas sales from Mozambique amounted to US$1,726 million (€1,633 million) in 2023, three times more than in 2022, approaching coal, which still leads among Mozambican exports.

According to data from previous reports by the Bank of Mozambique, natural gas exports in 2023 increased by 218% compared to the previous year, with sales reaching US$541.6 million (€512.4 million).

In 2023, Mozambique also exported gas, in value, identical to the sum of the years from 2017 to 2022, which totalled more than US$1,866 million (€1,765 million).

The increase in natural gas exports continues to be explained by the start of operations in Area 4 at the end of October 2022 — the only one of the three approved projects already in the production phase — 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, whose natural gas production began in 2022.

Eni, the concessionaire of Area 4 of Rovuma, is currently developing a second floating platform, a copy of the first and called Coral Norte, to increase gas extraction, a source from the Italian oil company told Lusa in June.

This plan involves, in particular, the acquisition of a second floating platform, known as FNLG, for the Coral Norte area, identical to the one that has been operating in gas extraction since mid-2022 in the Coral Sul area, already under construction in South Korea.

“Eni is working to develop Coral Norte through a second FLNG in Mozambique, taking advantage of the experience and lessons learned from Coral Sul FLNG, including those related to costs and execution time”, added the same source from the oil company, the consortium’s delegated operator.

A previously released document, prepared by the Mozambican firm Consultec for the oil company Eni, indicates that this is an investment of US$7 billion (€6.3 billion), subject to approval by the Mozambican government.

If the schedule goes as planned, the platform will begin production in the second half of 2027, meaning it could start even before the onshore projects, which depend on security implications due to the armed rebellion in Cabo Delgado.

Coral Norte will be located 10 kilometres north of Coral Sul, whose production started in November 2023, making it the first project to take advantage of the reserves in the Rovuma basin.

Source: Lusa