ExxonMobil intends to reach a final investment decision (FID) on the Rovuma LNG liquefied natural gas project in Mozambique before the end of this year, Mozambique’s presidency announced following a high-level meeting in Maputo.
The commitment was reiterated on Wednesday in the Mozambican capital during talks between President Daniel Chapo and Dan Ammann, ExxonMobil’s head of upstream operations, at a moment widely regarded as decisive for the future of the Area 4 mega-project in the Rovuma basin.
According to the presidency, the meeting was used to assess next steps towards the project’s realisation — coming just days after the US energy major announced the selection of the consortium responsible for the main onshore construction works, considered one of the final milestones before a formal investment decision can be taken.
At the close of the meeting, Johanna Boothey, president of ExxonMobil Mozambique, described the encounter as ‘very productive’, stressing that the parties had discussed how to advance the project so as to reach a Final Investment Decision before the end of 2025.
Boothey also said discussions had focused on the potential economic and social benefits of the development, including job creation, the implementation of social programmes, and an increase in revenues for the Mozambican state.
The Rovuma LNG project envisages the production, liquefaction and export of natural gas from Area 4 reserves located offshore Cabo Delgado province in the Rovuma basin, in the far north of the country. ExxonMobil will serve as operator of the future onshore facilities.
The FID is currently the principal outstanding milestone before the project’s development phase can begin. The scheme calls for the construction of 12 liquefaction trains with a combined output capacity of 18.6 million tonnes of LNG per year.
First gas is projected for 2031.
The project is led by ExxonMobil as delegated operator of Area 4, in partnership with Mozambique’s state hydrocarbons company Empresa Nacional de Hidrocarbonetos (ENH), CNPC, ENI, KOGAS and XRG.
In July, President Chapo told the Portuguese news agency Lusa that he expected the final investment decision to be approved by September, describing Rovuma LNG as ‘the largest private investment project on the African continent’, with an estimated total investment of around $20 billion.
Last week, ExxonMobil announced the selection of the SMDC consortium — led by Saipem and including McDermott Energy Solutions, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation — to carry out engineering, procurement and construction work on the project’s first phase.
Source: Mercado / Original article: https://mercado.co.ao/exxonmobil-preve-decisao-final-sobre-megaprojecto-de-gas-em-mocambique-ainda-este-ano/
