The Mozambican government projects state revenues from liquefied natural gas (LNG) exploitation will reach $101 million in 2029, driven by the commissioning of new projects in the Rovuma Basin in Cabo Delgado, according to the Medium-Term Fiscal Framework (CFMP) 2027–2029, reviewed on Tuesday (18) by Diário Económico.
The projections are contained in the Medium-Term Fiscal Framework (CFMP) 2027–2029, recently approved by the Council of Ministers — a document that serves as the reference for state budget preparation and fiscal policy definition over the coming years.
According to the document, revenues associated with gas projects are expected to stand at $80.1 million in 2027, ease slightly to $78.4 million in 2028, and then rise to $101 million in 2029. “State revenues from LNG exploitation should remain relatively stable in 2027,” the government states, adding that “from 2029 onwards, a gradual acceleration is anticipated.”
The projected growth trajectory is expected to track the entry into production of new LNG projects. Currently, Coral Sul, operated by Italy’s Eni, is the only project in production, having come online in 2022.
In October 2025, the government approved the investment for the development of the Coral Norte floating platform, valued at $7.2 billion. The unit is expected to begin production in 2028 and will approximately double the combined capacity of the Coral projects to around seven million tonnes of LNG per year.
Mozambique LNG, covering Area 1 of the Rovuma Basin and led by TotalEnergies at an estimated cost of around $20 billion, officially resumed activities in January 2026 after roughly four years of suspension due to the security situation in Cabo Delgado.
The project is expected to enter production in the final quarter of 2029, with a projected capacity of up to 13 million tonnes of LNG per year. Rovuma LNG, covering Area 4 and operated by ExxonMobil, represents an estimated investment of $30 billion and is expected to produce around 18 million tonnes per year after 2030. The final investment decision is scheduled for September.
According to the CFMP, Coral Sul is expected to remain operational throughout the entire 2027–2029 period, while Coral Norte will enter initial production in 2028. For Mozambique LNG, the government envisages a preparation phase in 2027, development in 2028, and initial production in the final quarter of 2029.
The government considers that the expansion of major energy projects should progressively contribute to economic growth and to the strengthening of public revenues. Under the terms of the Sovereign Wealth Fund Law, 60% of net gas revenues will be channelled to the State Budget, while the remaining 40% will be allocated to the Mozambique Sovereign Wealth Fund.
Based on this distribution, the government projects transfers to the State Budget of approximately $48.1 million in 2027, $47 million in 2028, and $60.6 million in 2029. According to the CFMP, these resources are expected to finance investments in economic and social infrastructure, agriculture, renewable energy, and industry.
Despite the positive revenue outlook, the government acknowledges that projections remain contingent on the evolution of international market prices, adherence to project timelines, and the security situation in Cabo Delgado, a province that continues to experience attacks by insurgent groups.
The forecasts form part of the government’s fiscal consolidation strategy, which aims to gradually increase the weight of domestic revenues in state financing and reduce the vulnerability of public finances. In this context, the government projects a reduction in public debt from 72.2% of gross domestic product (GDP) in 2025 to 67.1% in 2029, partly underpinned by the growing contribution of LNG exploitation revenues.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=531383
