“In the hydrocarbons area, the gains of the Coral Sul FLNG Project stand out, whose production began in 2022 and has already consolidated its success with the export of 120 shipments of Liquefied Natural Gas and 17 of condensate to the international market, generating over 235 million US dollars in revenue,” states the Ministry of Mineral Resources and Energy in a press release, which has been meeting since Monday in a coordinating council session.
Additionally, with the gas export, Mozambique positions itself globally as an important player in the supply of clean energy.
Mozambique has three approved development projects for exploring the natural gas reserves of the Rovuma basin, classified among the largest in the world, off the coast of Cabo Delgado, in addition to the Eni-operated project, the only one in production. There is also the Mozambique LNG (Area 1), operated by TotalEnergies, with up to 43 million tonnes per year (mtpa), and Rovuma LNG (Area 4), operated by ExxonMobil, with 18 mtpa, both in development stages.
In 2024, a study by Deloitte concluded that Mozambique’s gas reserves represent potential revenues of 100 billion dollars (96.2 billion euros).
This year alone, without yet the operation of the other projects, Mozambique’s estimated gas production is 5.4 billion cubic meters, making it the sixth-largest producer in Africa.
It was reported on Monday that the profits of the Mozambican Hydrocarbon Company (CMH) fell by 15% in the last fiscal year to 46.7 million dollars (39.4 million euros), but with the state oil company warning of the “steep decline” in gas reservoirs.
“One of the major challenges we face will be our ability to respond to the situation of steep production decline in our Pande and Temane reservoirs in the coming years, to maintain current performance levels,” reads the message from the board of directors, led by Arsénio Mabote, included in the 2024/2025 report and accounts, concluded in June.
CMH’s profits had already decreased by 15.5% in the fiscal year ending in June 2024 to 54.7 million dollars (46.1 million euros), according to previous data from the state oil company, now seeing further decline, in a period (2024/2025) also marked by a 9% decrease in natural gas sales by the company, compared to the previous time.
The administration attributes this decline in financial performance to “fluctuations in oil prices in the international market, as well as operational issues in key units of the Temane processing center,” Inhambane province, southern Mozambique.
