Mozambique: Sales of natural gas triple in 2023 to $1.7B, approach those of coal

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Mozambique: Sales of natural gas triple in 2023 to $1.7B, approach those of coal

7:18 CAT | 12 Mar 2024

File photo: Eni

Sales of natural gas by Mozambique last year totalled $1.726 billion (€1.591 billion), three times more than in 2022, and approaching the levels of those for coal, which still leads among the country’s exports.

According to data compiled on Friday by Lusa from statistical reports from the Bank of Mozambique, natural gas exports in 2023 were up 218% on the previous year, when these sales reached $541.6 million (€499.2 million).

In 2023, Mozambique also exported gas, in value, identical to the sum of the years 2017 to 2022, which totalled more than $1.866 billion (€1.720 billion).

The increase in natural gas exports is explained by the start-up, at the end of October 2022, of the operation in Area 4, by Mozambique Rovuma Venture (MRV), a joint venture co-owned by ExxonMobil of the US, Eni of Italy and CNPC of China, which has a 70% stake in the concession contract, with natural gas production starting in 2022. Galp, Kogas of South Korea and Mozambique’s own state-owned Empresa Nacional de Hidrocarbonetos each hold a 10% stake.

Eni, the oil company that is concessionaire for Rovuma Area 4, is already discussing with Mozambique’s government the development of a second floating liquefied natural gas (FLNG) platform, a copy of the first and called Coral Norte, to increase gas extraction, a source from the Italian oil company told Lusa last month.

This plan involves the acquisition of a second FNLG platform for the Coral North area, identical to the one that has been operating in the Coral South area since mid-2022.

“Eni is working towards the development of Coral Norte through a second FLNG in Mozambique, taking advantage of the experience and lessons learnt in the Coral Sul FLNG, including those related to costs and execution time,” added the same source from the oil company, the designated operator of that consortium.

A document released earlier, drawn up by Mozambique-based firm Consultec for Eni, points to an investment of seven billion dollars (6.3 billion euros), subject to approval by the Mozambican government.

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

Coral Norte will be 10 kilometres north of Coral Sul, which started production in November last year, making it the first project to take advantage of the large reserves in the Rovuma basin.

Source: Lusa