Mozambique Approves Rovuma LNG Plan
The Mozambique government has approved the development plan for the 15mn mt/yr Rovuma LNG project, the joint venture developing the liquefaction and export project in offshore Area 4 said May 14.
“The development plan approval marks another significant step toward a final investment decision later this year,” said ExxonMobil Upstream Oil & Gas president Liam Mallon. “We will continue to work with the government to maximize the long-term benefits this project will bring to the people of Mozambique,” he added.
Area 4 is operated by Mozambique Rovuma Venture, a joint venture of ExxonMobil, Italian Eni and China National Petroleum Company, which together own 70%. Portugal’s Galp, Korean Gas and Mozambican state ENH each hold 10% interests.
“This is the third development plan approved in this five-year period to enable the sustainable development of the huge natural gas reserves discovered in the Rovuma basin and represents the government’s commitment to ensure the implementation of projects that will drive the development of Mozambique,” said minister of mineral resources and energy Ernesto Elias Max Tonela. “We want Mozambican entrepreneurs and Mozambicans to be the main beneficiaries of the various business opportunities made available by the multinationals because we believe that these companies should grow with the national businesses and with Mozambique,” he stated.
ExxonMobil and Eni will jointly lead the marketing effort for the LNG produced by Rovuma, and sales and purchase agreements for 100% of the capacity for trains 1 and 2 have been submitted to the government for approval. ExxonMobil said in December 2018 all off-take had been subscribed by the project’s equity partners.
“The expected production from the Area 4 block will generate substantial benefits for Mozambique and the Area 4 partners,” said Eni's chief development, operations & technology officer Alessandro Puliti. “The development plan details our commitment to train, build and employ a local workforce and make gas available in support of Mozambique’s industrialisation.”
The first LNG from Rovuma LNG is expected in 2024. It is one of two major projects that hope to take an FID this year to make Mozambique a major gas exporter. Anadarko said earlier this month that it hopes to sanction its Mozambique LNG project on June 18.