Mozambique raises over US$206 million from first LNG project in Rovuma basin

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Mozambique raises over US$206 million from first LNG project in Rovuma basin

4:23 CAT | 13 May 2025

Photo: Ministério dos Recursos Minerais e Energia - Mireme

Mozambique has raised US$206 million (€183 million) from liquefied natural gas (LNG) produced by the deep water Rovuma basin Coral Sul platform, an official source has told Lusa.

“This project is proof that Mozambique has the potential to host this type of project. We believe that many other projects of this nature can be carried out in our country,” Mozambican Minister of Mineral Resources and Energy Estêvão Pale told Lusa at the end of a visit on Friday to the floating unit for processing, storage and offloading of liquefied natural gas, located in Area 4, over 60 kilometres off the coast of Cabo Delgado.

Area 4, in the north of the country, is operated by Mozambique Rovuma Venture (MRV), a consortium owned by Eni, ExxonMobil and China National Petroleum Corporation (CNPC), which has a 70% stake in the Area 4 Exploration and Production Concession Agreement.

Coral Sul FLNG, the first floating facility of its kind on the African continent, has a gas liquefaction capacity of 3.55 million tonnes per year (mtpa) and is expected to put 450 billion cubic metres of gas into production from the Coral Sul field.

Since production began in November 2022, 104 shipments have already been made, in a project that has an investment of around US$7 billion (€6.2 billion).

In total, the country collected US$206 million, of which US$65 million (€57 million) was in taxes on oil production, US$134 million (€119 million) in “profit oil” and US$7 million (€6.2 million) in production bonuses.

“We expect that, in the future, the country’s earnings will be in the order of US$1.3 billion [€1.1 billion] per year. This is significant for our balance of payments,” added Estevão Pale.

Since the start of exploration, according to official figures, in addition to around US$19 million (€16.9 million) spent on social responsibility projects, around US$819 million (€728 million) has been spent on expenses with Mozambican companies, and there are also 1,337 Mozambican workers on the platform, mainly young people.

“I see that all the young people working here are very motivated and that they are learning (…). The project is a success,” the Minister of Mineral Resources and Energy concluded.

On January 16, the CEO of the oil company Eni, Cláudio Descalzi, assured the Mozambican President, Daniel Chapo, that he plans to expand operations in the LNG project in the Rovuma basin, “projecting Mozambique onto the global natural gas scene”.

In a letter congratulating Daniel Chapo on his election as President of the Republic, who had been sworn into office a few days earlier, the leader of the Italian oil company acknowledged “Eni’s commitment to further strengthening collaboration”.

In April, the Mozambican government approved an investment of €6.6 billion in the Coral Norte LNG project, the second platform of its kind for that area, with a production forecast of 3.5 million mtpa and start-up in 2028.

“It consists of a floating natural gas liquefaction infrastructure with a capacity of 3.55 million tonnes per year and six production wells, valued at around US$7.2 billion [€6.6 billion], with production expected to start in the second quarter of 2028,” Council of Ministers spokesperson Inocêncio Impissa announced at the time.

In 2024, a study by the consultancy firm Deloitte concluded that Mozambique’s LNG reserves represent potential revenues of US$100 billion (€96.2 billion), highlighting the country’s international importance in the energy transition.

Mozambique has three approved development projects to explore the natural gas reserves of the Rovuma basin, classified as among the largest in the world, off the coast of Cabo Delgado.

Source: Lusa