Mozambique Publishes Fund Plan for LNG Projects
The Bank of Mozambique published its proposed model for a sovereign wealth fund as it prepares to reap as much as $96 billion from Mozambique’s liquefied natural gas (LNG) projects that companies including Total SE are currently constructing.
According to a document published on the Bank’s website on Monday, the fund – regulated by lawmakers and managed by the Ministry of Economy and Finance – will contribute to fiscal stability when commodity prices fluctuate. The central bank will manage the fund’s operations and implement its investment policy. The bank also laid out plans for how the fund may function and which institutions it will report to.
The developments in Mozambique are the biggest private investments yet in Africa and they have the potential to make the country Africa’s second-biggest LNG producer. The proposal states that the $96 billion will accumulate over the lifetime of the LNG projects.
The final proposal of the fund will be sent to the government, after considering public comments. Mozambique plans to have the fund operating before revenue from LNG starts to flow, with first production due in 2022 from the smallest of the three projects planned.