Thursday, July 18, 2024

Mozambique exported more than twice as much natural gas in nine months than in the whole of 2022

Sales of natural gas by Mozambique amounted to US$1.177 billion up to September, more than double that of the whole of 2022, coming close to coal, which continues to be the main export product.

According to a detailed report by the Bank of Mozambique on the volume of the country’s exports, compiled by Lusa, and which we are quoting, with data for the three quarters of 2023 and to which Lusa had access today, December 29, natural gas exports hit a record in the third quarter, exceeding US$500 million, compared to more than US$335 million in the previous quarter.

In the whole of 2022, Mozambique’s natural gas exports amounted to US$541 million and about half that of the previous year, according to the record provided by the Bank of Mozambique.

Also in the third quarter, Mozambique exported more than US$574 million in mineral coal, which is still the leading product sold abroad by the African country. In the total of the three quarters, Mozambique exported almost US$1.619 billion in coal and in the whole of 2022 around US$2.852 billion, double the figure for 2021.

Overall, Mozambican exports totaled US$ 3,714.9 million from January to September, but in 2022 they broke the record, with more than US$ 8,280.9 million in sales abroad, driven by coal.

The increase in natural gas exports is explained by the start-up, at the end of October 2022, of operations in Area 4, by Mozambique Rovuma Venture (MRV), a joint venture co-owned by ExxonMobil, Eni and CNPC (China), which has a 70% stake in the concession contract, with natural gas production starting in 2022.

Galp, Kogas (South Korea) and Empresa Nacional de Hidrocarbonetos (Mozambique) each hold a 10% stake. Eni, the concessionaire for Rovuma Area 4, is already discussing with the Mozambican government the development of a second floating platform, a copy of the first and called Coral Norte, to increase gas extraction, a source from the Italian oil company told Lusa last month.

This plan involves the acquisition of a second FNLG floating platform for the Coral Norte area, identical to the one that has been extracting gas in the Coral Sul area since mid-2022.

“Eni is working towards the development of Coral Norte through a second FLNG in Mozambique, taking advantage of the experience and lessons learned in the Coral Sul FLNG, including those related to costs and execution time,” added the same source from the oil company, the delegated operator of that consortium.

A previously released document, drawn up by the Mozambican firm Consultec for the oil company Eni, points to an investment of US$7 billion, subject to approval by the Mozambican government.
If the schedule goes according to plan, the platform will begin production in the second half of 2027, meaning it could start up even before the onshore projects, which depend on security implications due to the armed insurgency in Cabo Delgado.

Coral Norte will be stationed 10 kilometers north of Coral Sul, which started production in November last year, making it the first project to take advantage of the large reserves in the Rovuma basin.

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