ExxonMobil expects to complete the technical design of its natural gas extraction project in northern Mozambique within the next year, according to Walter Kansteiner, the company’s Vice President for International Government Relations.
Kansteiner made the announcement yesterday in New York after a meeting with the Mozambican President, who was concluding a visit to the United States.
“We have announced our Front End Engineering Design (FEED), which is our advanced engineering and design phase.
This process typically takes about a year, and we anticipate making significant progress within the next 12 to 13 months,” Kansteiner stated.
The project, located in Cabo Delgado, a region that has been impacted by terrorist activity for almost seven years, was initially projected to produce 15.2 million tons of liquefied natural gas (LNG) annually. However, ExxonMobil now expects the production capacity to reach 18 million tons per year.
In August, Mozambique’s president noted that ExxonMobil plans to make a final decision on the project in 2026.
After meeting with ExxonMobil Upstream President Liam Mallon in Maputo on August 14, the president discussed the ongoing progress of the LNG project in Cabo Delgado’s Rovuma Basin.
“Our discussions focused on the early engineering stages of the project, with plans to finalize approvals and make a Final Investment Decision (FID) by 2026.
The project is progressing well and is expected to be one of the least polluting LNG initiatives, with significant potential for the future,” President Nyusi explained.
Earlier, in May, Arne Gibbs, ExxonMobil’s CEO in Mozambique, indicated that the FID could be made by the end of 2025.
“We remain optimistic and are moving forward, but we are also aware of the challenges ahead,” Gibbs noted. He confirmed that the FID will likely be delayed until the end of 2025, aligning with previous statements by Mozambique’s President.
President Nyusi emphasized at the 10th Mozambique Mining and Energy Conference that financing should not be a factor delaying the project.
He called on both ExxonMobil and TotalEnergies, the major stakeholders in the gas megaprojects, to accelerate their work, citing the improved security situation in Cabo Delgado.
Nyusi urged TotalEnergies to speed up the resumption of its onshore projects in Area 1, given the “promising stability” in the region.
He also encouraged ExxonMobil to expedite the FID process for its onshore projects in Area 4, following necessary updates to the Development Plan approved in 2018.
Arne Gibbs further confirmed that ExxonMobil had completed the preliminary engineering and design for the Rovuma Basin project, which aims to produce 18 million tons of LNG annually. The team of engineers and designers is set to begin work in the coming months.
Regarding the security situation, which had previously halted construction in March 2021, Gibbs remarked, “There have been significant improvements since 2021, but more work remains to be done.”
The Rovuma LNG project is expected to be Africa’s largest liquefied natural gas initiative and potentially the largest in the continent’s history.
Mozambique has three approved development projects in the Rovuma Basin, one of the world’s largest natural gas reserves off the coast of Cabo Delgado.
