Mozambique’s burgeoning natural gas sector has delivered a significant economic boost, with exports reaching nearly $1.467 billion (€1.397 billion) in the first nine months of 2024, a substantial 24.6% increase compared to the same period last year. This surge in revenue signals a transformative shift in the nation’s export landscape, challenging the long-standing dominance of coal.
According to a recent report by the Bank of Mozambique, the impressive growth in gas exports is primarily attributed to the increased volume shipped, driven by the commencement of operations in Area 4 of the Rovuma Basin. This milestone, achieved despite a 15% drop in average international gas prices, underscores the robustness of Mozambique’s gas industry.
“The increase in natural gas revenues is attributed to the growth in the volume exported, associated with the start of exploration and export of gas from area 4 of the Rovuma Basin,” the report stated, highlighting the pivotal role of this new production.
While coal remains a significant export, its value has decreased to $1.54 billion (€1.467 billion) in the same period, indicating a potential shift in Mozambique’s export profile. The gas sector’s rapid expansion is a testament to the successful operationalization of Area 4, the only Rovuma Basin project currently in production, operated by Mozambique Rovuma Venture (MRV), a consortium of industry giants including Exxon Mobil, Eni, and CNPC.
The success of Area 4 has spurred further development, with Eni, the concessionaire, planning a second floating platform, Coral Norte. This $7 billion (€6.3 billion) project, mirroring the successful Coral Sul platform, aims to further amplify Mozambique’s gas production capabilities. “Eni is working towards the development of Coral Norte through a second FLNG in Mozambique, taking advantage of the experience and lessons learnt in the Coral Sul FLNG,” a source from the Italian oil company revealed.
The Coral Norte platform, slated for production in the second half of 2027, will be strategically positioned 10 kilometres north of Coral Sul, reinforcing the region’s position as a major gas production hub. The project’s progress is closely monitored, as it represents a crucial step in fully realizing the vast potential of the Rovuma Basin, one of the world’s largest natural gas reserves.
Beyond natural gas, Mozambique’s electricity exports also witnessed a 7.2% increase, reaching $535.3 million (€509.5 million). This growth is attributed to revised export prices applied to major customers by the primary electricity exporter.
The burgeoning gas sector and steady electricity exports are poised to reshape Mozambique’s economic landscape. As the country continues to develop its natural resources, it is crucial to ensure sustainable practices and equitable distribution of wealth, fostering long-term prosperity and stability.
