The country’s parliament, the Assembly of the Republic, has approved the Annual Report on Revenues from Liquefied Natural Gas (LNG) Exploitation for 2025, which records collections of US$88.13 million.
Presenting the report to parliament on Thursday, Minister of State Administration, Inocêncio Impissa, said US$56.46 million came from profit petroleum, while the remaining US$31.67 million were generated through the Petroleum Production Tax.
The total represents a 2.6% decrease compared with 2024. Impissa attributed the decline to a US$5 million production bonus received that year, which had no equivalent in 2025. Excluding this bonus, revenues increased by around 3%, despite a 14% fall in the average Brent crude oil price, to which LNG and condensate prices are linked.
The report also highlights progress in the operationalisation of the Mozambique Sovereign Fund. In 2025, the government approved the fund’s investment policy and signed a management agreement between the Ministry of Finance and the Bank of Mozambique on 19 November.
The first transfer of resources took place on 10 December, with initial investments in short-term deposits at three foreign financial institutions generating approximately US$210,000 in interest over around 20 days.
On future revenues, the report projects that Corporate Income Tax (IRPC) payments from the gas sector will begin in 2035, rising progressively to around US$2.6 billion in 2042, as companies gradually absorb accumulated tax losses. The government is also updating its long-term revenue forecasting model using the latest information from concessionaires to produce revised projections and assess potential risks to state revenues and the Sovereign Fund.
Regarding the use of gas revenues, around three billion meticais were allocated in 2025 to priority development projects, including roads, water supply, education, agriculture and economic infrastructure. However, only approximately 1.3 billion meticais were spent, representing an execution rate of 44.3%.
The government clarified that revenues collected in December 2025 above the budgeted allocation were transferred in full to the Sovereign Fund in early 2026, in accordance with the legal provisions governing the institution.
The parliamentary committee responsible for examining the report recommended independent audits and certification of revenue projections, compliance with legal transfer mechanisms, improved execution of priority projects and stronger supervision and auditing of the Sovereign Fund. It also called for quarterly reports to parliament and publication of the management agreement signed with the Bank of Mozambique.
Source: AIM
