Mozambique’s cabinet has approved changes to liquefied natural gas (LNG) contracts with U.S. oil major Anadarko and Italy’s Eni to allow the two companies to sell the government’s share of gas from projects in the Rovuma Basin, Reuters reported.

The LNG contracts are related to Anadarko’s Dolphin Tuna project and Eni’s South Coral project in areas 1 and 4, informed Ecofin Agency.

After the changes were approved by cabinet, the government’s Spokeswoman, Ana Coana, said: “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.” She added:  “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.”

It is noted that  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.

Mozambique has some 85Tcf of gas reserves. It is likely to take at least five years after final investment decisions before gas production begins.