Mozambique has announced to set up a 96 billion US dollar wealth fund by the end of 2022 as it prepares to commence export of its natural gas. According to the country’s Minister of Economy and Finance Max Tonela, the relevant legislation is being drafted as Mozambique targets an October date for the fund to become operational, just before exports begin at the offshore Coral South gas project.
Under the terms of the wealth fund, 50% of accrued revenue will be re-injected into it while the other half will go towards the government budget in the first twenty years of LNG production.
Minister Tonela who was previously Mozambique’s energy minister was in Washington DC for meetings with the International Monetary Fund and the World Bank and had discussions with representatives from Exxon Mobil. “They have already resumed the process to engage some of the financial institutions to ensure that they have financial close, the investment decision, in the relatively short-term,” he said.
Total Energies is expected to resume a $20 billion project which when completed will produce an estimated 13 million tons of liquified natural gas per year; while Exxon Mobil has said it will make the final decision on its own Mozambique gas project in the coming month. This is in addition to the $7 billion Eni SPA run Coral floating LNG project that will mark Mozambique’s foray into gas exploration and production.