ExxonMobil Demands Security Improvements Before Advancing Mozambique LNG Project
US energy giant ties $300 million investment to Cabo Delgado stability as production timeline extends to 2030
ExxonMobil has firmly linked the progress of its multi-billion-dollar LNG project in Mozambique’s Cabo Delgado province to continued security improvements in the region, which has faced terrorist attacks since 2017. The company’s general manager in Mozambique, Arne Gibbs, emphasized that defeating Islamist insurgents is critical to ensuring a sustainable development environment for the massive energy project.
The Final Investment Decision hinges on lifting the force majeure declared by TotalEnergies in April 2021, after terrorist attacks in Palma halted its Area 1 project adjacent to ExxonMobil’s Area 4. “Once the force majeure is lifted and the security situation improves, production could begin in 2029 or 2030,” Gibbs explained, noting that the project’s timeline could be affected if security conditions don’t stabilize.
ExxonMobil, which operates Area 4 in the Rovuma Basin through Mozambique Rovuma Venture (MRV) – a joint venture with Italy’s Eni and China’s CNPC – has already invested over $300 million in initial infrastructure development. This includes expansion in the Afungi Peninsula and the creation of more than 400 direct jobs for Mozambicans. The project represents potentially Africa’s largest LNG development, with the first phase expected to produce 18 million tonnes of LNG annually. The development includes subsea gas pipelines at depths exceeding 1,500 meters, transportation to Afungi, and processing in a liquefaction plant with massive production capacity. Despite security concerns, Gibbs expressed optimism about Mozambique’s energy future, stating that with stability and cooperation, the project will be transformative not only for Mozambique but for the entire region. The benefits, he emphasized, begin immediately after the investment decision, with revenues, taxes, jobs, and opportunities flowing long before the first gas is produced.
Sources: angolanminingoilandgas.com
