Maputo, July 7, 2025 (Lusa) - Mozambique’s revenues from the production and export of Liquefied Natural Gas (LNG) increased by 21.8% in 2024, and the government anticipates more modest growth this year and next.
According to data from the Medium-Term Fiscal Scenario (CFMP), a document recently approved by the government, revenues totalled $91.8 million in 2024, equivalent to 5.87 billion meticais (€78.1 million).
“For 2025 and 2026, projections show a reduction of 13.8% and 16.4%, respectively, compared to 2024,” The cabinet approved the document on 24 June 2024, which estimates revenues of $79.2 million or 5.06 billion meticais (€67.3 million) in 2025 and $76.8 million or 4.97 billion meticais (€66 million) in 2026.
State revenues from LNG include production bonuses, oil production tax, royalties and oil profits.
“This decrease is due to the stabilisation of production combined with the expectation of less favourable prices on the international market, reflecting a negative variation in state revenues from LNG in those years,” the document added in its forecasts for the sector.
In the CFMP, the government stated that “state revenue, the main component of domestic resources, will increase from 417.4 billion meticais (€5.56 billion) in 2026 (25.4% of gross domestic product) to 492.2 billion meticais(€6.55 billion) in 2028 (25.7% of GDP)".
“Revenues from LNG exploration, which account for 60% of net revenue, are expected to be around 0.3% of GDP over the period, reflecting the gradual maturation of production and the legal framework of the Sovereign Fund,” the latter of which has been operational since 2024.
Mozambique has three approved mega-development projects for the exploration of LNG reserves in the Rovuma basin, ranked among the largest in the world, off the coast of Cabo Delgado, including one by TotalEnergies, which the company has suspended due to security issues, and another by ExxonMobil, which awaits a final investment decision, both on the Afungi peninsula.
Eni operates the only one in production since mid-2022, the concessionaire for Area 4 of Rovuma, which has meanwhile moved forward with a second floating platform, a copy of the first (Coral Sul) and designated Coral Norte, to increase gas extraction.
On 8 April, Mozambique’s government approved a €6.6 billion investment for the Coral North LNG project, which is expected to produce 3.55 million tonnes per year and start up in 2028.
“The plan constitutes the second phase of development of the Coral Norte field (...) and 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 $7.2 billion (€6.13 billion), with production scheduled to start in the second quarter of 2028,” announced the spokesman for the Council of Ministers, Inocêncio Impissa, on that date.
‘The project will also generate 1,400 jobs for Mozambicans, with plans to implement a succession plan to increase the skills and availability of Mozambican labour in the oil and gas sector,’ he added.
The country also expects to raise $23 billion (€20.1 billion) over 30 years from the Coral Norte project, according to the government.
PVJ/ADB // ADB.
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