Revenues from the export of natural gas by Mozambique grew by a remarkable 30% in the first quarter of 2024, reaching 28 billion meticais (443 million dollars), according to a report released by the Bank of Mozambique (BdM).
The increase represents a significant improvement on the 21.5 billion meticais (340.9 million dollars) recorded in the same period last year. According to the BdM, “the growth in natural gas revenues is attributable to the increase in the volume exported, driven by the start of operations in Area 4 of the Rovuma Basin, despite the 43.5% drop in the average price of gas on the international market.”
Mozambique has the third largest natural gas reserves in Africa, estimated at 180 million cubic feet. The country currently has three projects approved to exploit these reserves in the Rovuma Basin, one of the largest in the world, located off the coast of Cabo Delgado.
In 2023, natural gas sales reached 107.4 million meticais (1.7 million dollars), a figure three times higher than in 2022. This growth has put natural gas close to coal in terms of the value of Mozambican exports.
The BoM report highlights that natural gas exports increased 218% compared to the previous year, when they totaled 34.1 billion meticais (541.6 million dollars). The volume exported in 2023 corresponds to the sum of gas exports from 2017 to 2022, which totaled more than 113.7 million meticais (1.8 million dollars).
This growth is largely due to the start of operations in Area 4 of the Rovuma Basin at the end of October 2022. This project is led by Mozambique Rovuma Venture (MRV), a joint venture between ExxonMobil, Eni and CNPC (China), which holds a 70% interest in the concession contract and is already in the production phase.
Eni, the concessionaire for Area 4, is developing a second floating platform, Coral Norte, to increase gas production. According to Eni sources, this new platform will be similar to the first, currently under construction in South Korea. The project includes the acquisition of a second FLNG unit for the Coral North area, taking advantage of the lessons learned from the Coral South FLNG.
A previous report by Consultec, in partnership with Eni, estimates that the investment in Coral Norte could reach 442.2 billion meticais (7 billion dollars), subject to government approval. If the schedule is maintained, the platform should start production in the second half of 2027, ahead of the onshore projects, which face security challenges due to the armed insurgency in Cabo Delgado.
Coral North will be located 10 kilometers north of Coral South, which began production in November 2022, marking the start of exploitation of the vast reserves of the Rovuma Basin.
