According to data from the Medium-Term Fiscal Scenario (CFMP), a document recently approved by the Government, Mozambique’s revenues from the production and export of Liquefied Natural Gas (LNG) increased by 21.8% in 2024, totaling $91.8 million — equivalent to 5.87 billion meticais (€78.1 million). However, the Government anticipates a decline this year and next.
“For 2025 and 2026, a reduction of 13.8% and 16.4%, respectively, compared to 2024 is projected,” the document states. Approved by the Council of Ministers on June 24, the forecast estimates revenues of $79.2 million (5.06 billion meticais or €67.3 million) in 2025 and $76.8 million (4.97 billion meticais or €66 million) in 2026.
The State’s revenues from LNG include production bonuses, Petroleum Production Tax, royalties, and profit oil.
“This decrease results from stabilized production combined with expectations of less favorable international market prices, reflecting a negative variation in the State’s LNG revenue during those years,” the document adds in its projections for the sector.
In the CFMP, the Government notes that “State revenue, the main component of domestic resources, is expected to increase from 417.4 billion meticais (€5.56 billion) in 2026 (25.4% of GDP) to 492.2 billion meticais (€6.55 billion) in 2028 (25.7% of GDP).”
“Revenues from LNG exploitation, which represent 60% of net LNG-related revenues in the budget, are expected to remain around 0.3% of GDP during the period, reflecting the gradual maturation of production and the legal framework of the Sovereign Fund,” the latter being operational since 2024.
Mozambique has three approved megaprojects for exploiting LNG reserves in the Rovuma Basin, considered among the largest in the world, off the coast of Cabo Delgado. These include a project by TotalEnergies — still on hold due to security concerns — and another by ExxonMobil, which is awaiting a final investment decision. Both are located on the Afungi peninsula.
The only project currently in production, since mid-2022, is operated by Eni, the Area 4 concessionaire in the Rovuma Basin. Eni has since advanced to a second floating platform, a replica of the first (Coral Sul), called Coral Norte, to increase gas extraction.
On April 8, the Mozambican Government approved a €6.6 billion investment for the Coral Norte LNG project, with a planned production capacity of 3.55 million tons per year and operations set to begin in 2028.
“The plan constitutes the second development phase 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 about $7.2 billion [€6.13 billion], with production expected to start in the second quarter of 2028,” said Government spokesperson Inocêncio Impissa at the time.
“The project will also generate 1,400 jobs for Mozambicans, and a succession plan is expected to be implemented to enhance qualifications and increase the availability of local labor in the oil and gas sector,” he added.
The country also expects to earn $23 billion (€20.1 billion) over 30 years from the Coral Norte project, according to the Government.
Source: Lusa
