On Tuesday, March 3, the Executive approved the creation of two interministerial committees to monitor and ensure, in a swift and coordinated manner, the development of natural gas exploration projects in the Rovuma Basin, in the province of Cabo Delgado, in the north of the country, according to the Lusa news agency.
The decision was taken in resolutions approved by the Council of Ministers and provides for the creation of the Interministerial Committee for the Coordination of the Development Plan for Area 1 of the Rovuma Block and another similar body for Area 4 of the same block.
According to the spokesperson for the Council of Ministers, Inocêncio Impissa, the committees will have the mission of “monitoring and ensuring the swift and coordinated evaluation of amendments to the development plans for the Mozambique LNG project in Area 1 and the Rovuma LNG project in Area 4.”
The Executive justified the measure on the basis of the financial and strategic scale of the projects, which are considered to be fundamental to the national economy, as well as the direct impact expected on the country’s future public revenues.
“It is justified by the financial and strategic dimension of these two projects, which are structural,” explained Impissa, emphasizing that investments in liquefied natural gas play a decisive role in boosting the economy, strengthening local content, and positioning Mozambique internationally as a producer and supplier of liquefied natural gas to the global market.
Megaprojects in Africa’s largest gas reserve
Mozambique currently has three megaprojects approved for the exploration of the vast gas reserves in the Rovuma basin, ranked among the largest in the world, located off the coast of Cabo Delgado.
On the Afungi peninsula is the Area 1 project, led by French company TotalEnergies, with an expected production capacity of 13 million tons per year (mtpa). The project is currently in the process of resuming after being suspended due to terrorist attacks in the region.
The multinational recently announced the reconfirmation of international financing for the project and declared improvements in security conditions, having already lifted the “force majeure” clause that had been in place since 2021.
“It is justified by the financial and strategic importance of these two projects, which are fundamental,” he explained.
Inocêncio Impissa, spokesperson for the Council of Ministers
Also in Afungi, the Rovuma LNG project is planned for development in Area 4, led by the US company ExxonMobil, with an estimated capacity of 18 mtpa, currently awaiting a final investment decision.
On the other hand, in ultra-deep waters in the same basin, the consortium led by Italy’s Eni has been operating the Coral Sul floating unit since 2022, dedicated to the production and export of liquefied natural gas. The group is now preparing to move forward with the second unit, Coral Norte, which is scheduled to start production in 2028.
Enhanced coordination and impact on public finances
With the creation of the two interministerial committees, the government aims to strengthen institutional coordination in the analysis of possible changes to development plans, ensuring faster administrative processing and greater coordination between the different sectors of the state involved in the projects.
The Executive considers that the progress of the projects in the Rovuma basin could represent a turning point for public finances, in a context where the country is investing in the extractive sector as one of the main drivers of economic growth in the coming years.
