Maputo, July 30, 2024 (Lusa) - Mozambique's natural gas exports in the first quarter of the year totalled $443 million (€408.8 million), an increase of almost 30% on the same period in 2023 despite the recent slump in market prices, according to data from a report by the Bank of Mozambique, to which Lusa had access on Tuesday.
In the first quarter of 2023, revenues from these exports brought in $340.9 million (€314.6 million), the data show.
"The increase in revenues from natural gas results from the increase in the volume exported associated with the start of exploration and export of gas from area 4 of the Rovuma basin, despite the average price on the international market having fallen by 43.5%," reads the central bank document, which details Mozambican exports.
Mozambique has the third largest natural gas reserves in Africa, estimated at 180 million cubic feet, and currently has three development projects approved to exploit the natural gas reserves in the Rovuma basin, classified among the largest in the world, off the coast of Cabo Delgado.
Sales of natural gas by Mozambique totalled 1,726 million dollars (1,591 million euros) in 2023, three times more than in 2022, coming close to coal, which still leads among Mozambican exports, according to data previously reported by Lusa.
According to data from previous Bank of Mozambique statistical reports, natural gas exports in 2023 increased by 218% compared to the previous year, when these sales totalled 541.6 million dollars (499.2 million euros). In 2023, Mozambique also exported gas, in value, identical to the sum of the years 2017 to 2022, which totalled more than 1,866 million dollars (1,720 million euros).
The increase in natural gas exports continues to be explained by the start-up, at the end of October 2022, of operations in Area 4 - the only one of the three approved projects already in the production phase - 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.
Italy's Eni, the concessionaire for Rovuma Area 4, is developing a second floating platform, a copy of the first and called Coral Norte, to increase gas extraction, a source from the company told Lusa last month.
This plan involves the acquisition of a second FNLG floating platform for the North Coral area, identical to the one that has been extracting gas since mid-2022 in the South Coral area, which is already under construction in South Korea.
"Eni is working towards the development of Coral North through a second FLNG in Mozambique, taking advantage of the experience and lessons learnt in the Coral South FLNG, including those related to costs and execution time," added the same source from the oil company, the delegated operator of that consortium.
A document released earlier, drawn up by the Mozambican firm Consultec for the oil company Eni, points to an investment of $7 billion (€6.3 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 rebellion in Cabo Delgado.
Coral Norte will be stationed 10 kilometres 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.
PVJ/ARO // ARO.
Lusa
