Mozambique: Natural gas dethrones coal as greatest export in Q1
Mozambique: Gas revenues rose 21.8% in 2024, slower growth this year, next
12:32 CAT | 07 Jul 2025
File photo: Lusa
Mozambique’s revenues from the production and export of Liquefied Natural Gas (LNG) increased by 21.8% in 2024, and the government anticipates more modest growth this year and next.
According to data from the Medium-Term Fiscal Scenario (CFMP), a document recently approved by the government, revenues totalled US$91.8 million in 2024, equivalent to 5.87 billion meticais (€78.1 million).
“For 2025 and 2026, a reduction of 13.8% and 16.4% respectively is projected, compared to 2024”, the document, approved by the Council of Ministers on June 24 reads, estimating revenues of US$79.2 million or 5.06 billion meticais (€67.3 million) in 2025 and US$76.8 million or 4.97 billion meticais (€66 million) in 2026, respectively.
The state’s revenues from LNG include production bonuses, Oil Production Tax, royalties and oil profits.
“This decrease is due to the stabilization of production combined with the expectation of less favourable prices on the international market, reflecting in a negative variation in the State’s revenue from LNG in those years,” adds the document in its forecasts for the sector.
In the CFMP, the government states that “State revenue, the main component of internal resources, is expected to increase from 417.4 billion meticais [€5.56 billion] in 2026 (25.4% of GDP [Gross Domestic Product]) to 492.2 billion meticais [€6.55 billion] in 2028 (25.7% of GDP)”.
“Revenues from LNG exploration, whose budgetary share represents 60% of net revenue, are expected to be around 0.3% of GDP over the period, reflecting the gradual maturation of production and the legal framework of the Sovereign Fund,” the latter of which has been operational since 2024.
Mozambique has three mega-development projects approved for the exploration of the Rovuma basin’s LNG reserves, classified as among the largest in the world, off the coast of Cabo Delgado, including one by TotalEnergies, still suspended due to safety concerns, and another by ExxonMobil, which is awaiting a final investment decision, both on the Afungi peninsula.
The only one in production, since mid-2022, is the one operated by Eni, the concessionaire of Area 4 of Rovuma, which has since moved to a second floating platform, a copy of the first (Coral Sul) and called Coral Norte, to increase gas extraction.
On April 8, the Mozambican government approved an investment of €6.6 billion for the Coral Norte LNG project, with an expected production of 3.55 million tons per year and start-up in 2028.
“The plan constitutes the second phase of development of the Coral Norte field (…) and consists of a floating natural gas liquefaction infrastructure with a capacity of 3.55 million tons per year and six production wells, valued at around US$7.2 billion [€6.13 billion], with production expected to start in the second quarter of 2028,” announced to Council of Ministers spokesperson Inocêncio Impissa on that date.
“The project will also generate 1,400 jobs for Mozambicans, with the implementation of a succession plan to increase the qualifications and greater availability of Mozambican labour in the oil and gas sector,” he added.
The country also expects to raise US$23 billion (€20.1 billion) in 30 years with the Coral Norte project, according to the government.
Source: Lusa
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