(Ecofin Agency) - Mozambique's cabinet on Wednesday announced the approval of amendments to the liquefied natural gas (LNG) contracts with Anadarko and Eni, in order to allow the two companies sell the government's share of gas from projects in the Rovuma Basin.

The LNG contracts are related to Anadarko's Dolphin Tuna project and Eni's South Coral project in areas 1 and 4 of the Rovuma basin.

“The government opted to relinquish its right to receive in kind its quota of available gas as well as the gas production tax. The aim is to turn the projects viable. The concessionaires commit themselves to a joint-sale of liquefied natural gas in order to offer huge volumes and get better prices at the market,” Ana Coana, government spokeswoman said after the changes were approved by cabinet.

While Eni’s final investment decision on its LNG project is expected by the end of this year, Anadarko's investment decision is expected next year, Reuters reports.

Mozambique has about 85 trillion cubic feet of gas reserves, enough to supply Germany, Britain, France and Italy for close to two decades. The southern African nation is expected to take close to five years after final investment decisions before gas production begins.

Anita Fatunji