ExxonMobil pushing forward with Mozambique LNG project, official says

MAPUTO, May 2 (Reuters) – ExxonMobil is
“optimistic and pushing forward” with its delayed Rovuma
liquefied natural gas (LNG) project in Mozambique and expects a
final investment decision at the end of next year, a company
official said on Thursday.

ExxonMobil and its partner Eni are developing the
Rovuma LNG project in offshore Area 4 in northern Mozambique,
with Exxon leading the construction and operation of the onshore
liquefaction and related facilities, while Eni concentrates on
the Coral floating LNG and upstream operations.

When TotalEnergies declared force majeure in 2021
due to an offensive by Islamic State-linked insurgents that
threatened its Area 1 Mozambique LNG plant, ExxonMobil was also
affected due to the development of shared and common facilities,
such as an LNG jetty and offloading facility.

“We recognise there are challenges and there are. We
recognise that those challenges can be overcome if we work
together,” Arne Gibbs, general manager at ExxonMobil Mozambique,
told an energy conference in Maputo.

“My message is quite simple … We are optimistic, we are
pushing forward,” he said of a project expected to enter a
front-end engineering and design (FEED) phase in a few months.

The project, initially slated for 15 million metric tons per
annum (mtpa), has been redesigned to a new modular, electric LNG
18 mtpa plant that offers more flexibility and produces less
harmful emissions, Gibbs said.

“It was important to change our design to a project that is
ready-made, that is fit for purpose for the current business
environment, including the attention to CO2 emissions and GHG
(greenhouse gases),” he added.

In March, Credit Agricole said it would not
provide financing to two major LNG projects, including Rovuma,
citing commitments to refrain from new fossil fuel developments.

Gibbs said the company recognised that the security
situation had improved significantly, due to the intervention of
a regional military force as well as military support from
Rwanda to Mozambique.

Exxon said in February that it was monitoring security
developments in the Cabo Delgado province, where Islamic
State-linked militants launched a new wave of attacks this year.
(Reporting by Wendell Roelf and Manuel Mucari; writing by
Nellie Peyton and Wendell Roelf; Editing by Jason Neely and
Emelia Sithole-Matarise)