RIYADH: As Mozambique prepares to export natural gas, eyeing $96 billion in revenue, it plans to set up a sovereign wealth fund toward the end of 2022.
Authorities are finalizing the draft legislation that will govern the fund, Bloomberg reported, citing Finance Minister Max Tonela.
The fund will become operational by October before liquified natural gas exports start flowing from an offshore project that Italian multinational oil and gas company Eni SpA is developing.
According to the plan, 50 percent of the fund’s revenues should be reinjected into the fund, while the remaining 50 percent will go to the government’s budget during the first 20 years of LNG production.
This approach will help ensure savings and fiscal stability should commodity prices fluctuate.
French multinational integrated oil and gas company TotalEnergies will resume a $20 billion project toward the end of the year, which is expected to produce up to 13.1 million tons of LNG per year.
In addition, ExxonMobil will also make a final decision for an even larger project in the near future.