Revenues from liquefied natural gas (LNG) exploited in the Rovuma basin, Cabo Delgado province, northern Mozambique, have increased satisfactorily, totalling 60.4 million dollars (3.8 billion meticals) between January and August this year, according to figures released by the Ministry of Economy and Finance (MEF).
According to the balance sheet of the Economic and Social Plan and State Budget (PESOE), of the amount collected, 22.23 million dollars came from the Mining Production Tax, and since 2022 gas has brought in a total of 134.6 million dollars.
‘The amount is deposited in the transitory account at the Bank of Mozambique, as determined by article 6 of Law no. 1/2024, of 9 January, which creates the Sovereign Fund of Mozambique,’ the document states.
Parliament approved the creation of the FSM on 15 December last year, establishing that the fund will be made up of revenues from natural gas exploration, which by the 2040s could reach 379 billion meticals (6 billion dollars) a year.
On 12 March, the government estimated that the WSF would be operational in April, after the regulations were approved that same day, according to the Deputy Minister of Economy and Finance, Amílcar Tivane.
‘Projections indicate that annual gas exports could amount to around 5.8 billion meticals (91.7 million dollars) over the life cycle of the project, if all the development initiatives approved so far are in operation.
In this scenario, annual revenues for the state should peak in the 2040s, exceeding 6 billion dollars a year,’ said the Minister of Economy and Finance, Max Tonela.
In addition, the FSM regulation establishes the procedures to ensure the transfer of resources from the exploitation of liquefied natural gas, as well as from future oil and gas projects. For the first 15 years, 60 per cent of revenues will be allocated to the State Budget and 40 per cent to the Sovereign Fund. From the 16th year onwards, the distribution will be equal (50/50).
The International Monetary Fund (IMF) previously considered the creation of the GSF, approved by Parliament, to be ‘an important step’ in ensuring ‘transparent and sound management’ of natural resources.
