Analysts believe that the Coral South FLNG project could significantly increase gas production in Mozambique this year.
Oxford Economics Africa this Sunday November 26 revised upwards its growth forecast for Mozambique this year, from 4.4% to 5.1%, due to “surprising data” on the evolution of the economy in the third quarter.
“Mozambique’s economic growth in the third quarter was higher than expected, essentially due to the continued increase in liquefied natural gas production on the off-shore platform in the Rovuma basin and the recovery in agricultural production, so this growth above expectations leads us to improve the growth forecast to 5.1%”, says the African department of Oxford Economics.
In the African department’s commentary on the growth figures for the third quarter, which show an expansion of 6.0% compared to the same period in 2022 and 2.9% compared to the previous quarter, the analysts believe that the Coral South FLNG project could significantly increase gas production in Mozambique this year.
TotalEnergies’ project in Cabo Delgado, the largest in the country, “is only expected to restart in the first quarter of 2024, due to ongoing negotiations with contractors and adjacent communities about the works”, Oxford Economics Africa also writes.