Mozambique makes first export of Liquefied Natural Gas
Business Reporter.
THE President of Mozambique, Mr Filipe Nyusi, announced the first export of Liquefied Natural Gas from Cabo Delgado.
Mozambique is significantly being exposed to the European Union (EU)’s planned Carbon Border Adjustment Mechanism (CBAM), mainly due to its large aluminium export to the EU.
Aluminium is the country’s largest export good, making up 25 per cent of export earnings, worth US$1.4 billion. According to an article by Enabel published on November 3, 2022, under the proposed CBAM, Mozambique’s aluminium exports could result in an annual taxation of between EUR 50 – 350 million per annum, depending on the approach used for estimating the carbon intensity.
On the other hand, Mozambique also has unrivalled natural energy resources that could significantly contribute to a green energy transition, not only domestically but also in the Southern African region.
Mozambique’s first LNG cargo departs from Coral Sul FLNG, offshore the Rovuma basin.
The LNG was produced by the Coral Sul floating LNG platform, and left for the international market on board the cargo ship “British Sponsor.”
As part of its exploration activity offshore Mozambique, Eni discovered Coral South gas field in 2012 and took its final investment decision in 2017, pledging to start producing gas using a floating LNG plant after five years.
The next LNG project to take shape is likely to be that of the consortium headed by the French company TotalEnergies, at the Afungi Peninsula in Cabo Delgado.
Finally, based on the large gas discoveries over the past decade, Mozambique may emerge as one of the largest LNG exporters in the world. Over the last years, large consortia led by Total Energies, Exxon Mobil and ENI have started preparing for scaling up the gas exploration in the northern region of the country.
Mozambican President Filipe Nyusi announced the first export of Liquefied Natural Gas (LNG), from the Rovuma Basin, off the coast of the northern province of Cabo Delgado.
Nyusi recalled that in 2016 the government approved the development plan for the Coral South Floating LNG project, and in 2017 the Final Investment Decision on the project was taken. The government at the time was convinced that the first export from the floating platform would take place in 2022.
“Everything has worked out”, said Nyusi. “Today Mozambique has entered the annals of world history as one of the exporters of liquefied natural gas”. This would contribute to energy security in the countries that are major consumers of natural gas.