Carregamento de gas natural na bacia do Rovuma, província de Cabo Delgado em Moçambique, do empreendimento Coral Sul
Maputo, 3 Jun (AIM) – The Mozambican branch of the South African Standard Bank believes that the Rovuma LNG Project, which is led by the US oil and gas company ExxonMobil, in Rovuma Basin, northern province of Cabo Delgado, may add on average approximately 11 billion US dollars to the country’s Gross Domestic Product (GDP) annually.
The project, which is close to the Final Investment Decision (FID), is expected to generate, over the course of 30 years, up to 150 billion US dollars in revenue for the Mozambican state.
With an estimated investment of 30 billion dollars before the start of production –currently scheduled for 2030 – Rovuma LNG is described as the largest commercial project in African history.
According to a study recently released by Standard Bank – which assesses the “current case” scenario over the period from 2025 to 2056, when the projects concession contract is expected to expire – the project could create around 151,000 jobs and generate nearly 4 billion dollars in annual tax revenue, highlighting its potential to significantly boost the country’s economy.
The study also projects an annual contribution of 9 billion dollars to Mozambique’s balance of payments, along with a 21 percent increase in average household income.
“The country’s real economic growth rate could rise from 3.3 percent to 4.1 percent per year. By 2056, Mozambique’s Sovereign Wealth Fund could accumulate a real balance of up to 81 billion dollars, providing a significant financial reserve for future generations”, reads the study.
According to the document, in addition to GDP growth, the project is expected to increase the country’s Gross National Income by approximately 6 billion dollars annually, while creating around 1,000 direct jobs during the operational phase.
“Tax revenues will play a critical role in reducing sovereign debt and strengthening public investment in areas critical to the country’s development, while simultaneously boosting economic growth. Rovuma LNG represents a unique opportunity for Mozambique’s development”, said Standard Bank’s CEO, Bernardo Aparício, at the launch of the study.
For his turn, João Guirengane, Standard Bank Director of Corporate and Investment Banking, said that revenues generated by the project can be channeled to strengthen the National Development Strategy (ENDE), promoting sustainable economic growth and creating employment opportunities throughout the project’s lifespan.
This study follows a previous report published in March 2019, when the project’s capacity stood at 15.2 million tons per year (MTPA). The current report – updating data from ExxonMobil which reflects the increase in liquefaction capacity and the creation of the Sovereign Wealth Fund in 2025 – focuses on the expanded production capacity of the project, which could reach 18 MTPA when fully operational.
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