ExxonMobil awaits Mozambique’s response on LNG investment

The Rovuma liquefied natural gas (LNG) export project in Mozambique, led by ExxonMobil, is expected to receive final approval in 2025, according to Peter Clarke, Senior Vice President of Upstream Oil and Gas at ExxonMobil. Speaking at a conference in Vancouver, Clarke highlighted the project’s progress, noting that the security situation has been effectively managed by the Mozambican government. He expressed optimism for positive developments as the year progresses.

This announcement marks the first time ExxonMobil has provided a clear timeline for the project since it revived plans to construct the onshore plant. The project was previously stalled in 2020 due to security concerns linked to an insurgency associated with the Islamic State. If approved by 2025, the project is expected to commence operations by the end of the decade. Originally designed to produce 15.2 million tonnes per year, Exxon now envisions an increased output of up to 18 million tonnes from the plant.

ExxonMobil is aiming to expand its LNG portfolio, which currently stands at 24 million tonnes per year globally, by nearly doubling it to meet growing demand by 2030. This expansion may be achieved through new projects, joint ventures, or third-party offtake agreements, as stated by Clarke.

In addition to the Rovuma project, Clarke also provided an update on the Papua LNG project in Papua New Guinea. The project has progressed into the front-end engineering and design phase, and a final investment decision for the 6 million tonnes per year plant could be made by early 2024, with operations commencing in 2028.

Furthermore, Clarke mentioned that ExxonMobil would selectively consider additional LNG projects in the United States for potential expansion of its LNG supply portfolio.