ExxonMobil is maintaining its optimism and commitment to the Rovuma liquefied natural gas (LNG) project in Mozambique, despite facing challenges and delays. The company, along with its partner Eni, is forging ahead with plans for a final investment decision by the end of next year, according to a company official.
The Rovuma LNG project, situated in offshore Area 4 in northern Mozambique, is a joint effort between ExxonMobil and Eni, with Exxon leading the onshore liquefaction and related facilities, while Eni focuses on floating LNG and upstream operations.
Challenges arose for ExxonMobil when TotalEnergies declared force majeure in 2021 due to security concerns linked to Islamic State insurgents, affecting shared facilities between the two projects, such as LNG jetty and offloading facilities.
Arne Gibbs, the general manager at ExxonMobil Mozambique, emphasized the importance of collaboration in overcoming these challenges. Speaking at an energy conference in Maputo, Gibbs highlighted the company’s optimism and determination to move forward with the project, which is expected to enter the front-end engineering and design (FEED) phase in a few months.
The project, initially designed for 15 million metric tons per annum (mtpa), has been reconfigured to an 18 mtpa modular, electric LNG plant, aiming for increased flexibility and reduced emissions. Gibbs underlined the project’s adaptation to current business and environmental demands, including a focus on reducing CO2 emissions and greenhouse gases.
However, financial concerns have emerged, with Credit Agricole announcing in March that it would not provide financing to Rovuma and other major LNG projects, citing commitments to limit investments in fossil fuel developments.
Despite these challenges, Gibbs noted a significant improvement in the security situation, thanks to the intervention of a regional military force and support from Rwanda. Exxon has been closely monitoring security developments in the Cabo Delgado province, where Islamic State-linked militants have launched recent attacks.
ExxonMobil’s steadfastness in pushing forward with the Rovuma LNG project underscores its long-term commitment to Mozambique’s energy sector. The project’s success hinges on navigating challenges effectively and leveraging opportunities for collaboration and innovation.
The future of Rovuma LNG remains in focus as ExxonMobil and its partners navigate a complex landscape to realize Mozambique’s potential as a major player in the global LNG market.
