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Home Extractive industry GAS SALES AGREEMENTS FOR ROVUMA LNG: Pricing and Implications for State Revenue

GAS SALES AGREEMENTS FOR ROVUMA LNG: Pricing and Implications for State Revenue

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</img>GAS SALES AGREEMENTS FOR ROVUMA LNG: Pricing and Implications for State Revenue

Sales agreements for Rovuma's Liquefied Natural Gas (LNG) are being negotiated at a time when gas prices are more volatile than ever. Earlier government revenue projections were based on price forecasts for LNG from Asia, which are no longer credible due to shale gas production in the United States and falling international oil prices. Lower prices mean less revenue for the state and could jeopardize the future expansion of Rovuma's LNG production.

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