Financial rating agency Fitch Ratings has stated that the resumption of TotalEnergies’ Liquefied Natural Gas (LNG) project in Mozambique this year could pave the way for ExxonMobil’s long-awaited final investment decision on a major LNG development in the country’s north.
“The resumption of construction on TotalEnergies’ LNG project could facilitate a final investment decision (FID) on ExxonMobil’s proposed $30 billion LNG project.
This partially onshore project would drive economic growth during its construction phase,” Fitch noted in an assessment consulted by Lusa.
According to the agency, ExxonMobil’s LNG project could be the largest in Mozambique, with a planned production capacity of 18 million tonnes per annum (mtpa), surpassing TotalEnergies’ 12.9 mtpa. Production is expected to begin after 2030.
TotalEnergies, leading the Area 1 consortium, is developing an LNG plant in Afungi, near Palma, to produce and export natural gas.
This project is one of three LNG developments in Mozambique that were suspended in 2021 due to terrorist attacks in Cabo Delgado.
Following these attacks, TotalEnergies invoked a force majeure clause and withdrew its staff. However, the company is now preparing to resume operations while finalizing financing agreements.
In October, ExxonMobil selected U.S. engineering firm McDermott to lead a consortium tasked with preparing the Front-End Engineering Design (FEED) for its Rovuma LNG project.
The consortium also includes Italy’s Saipem and China Petroleum Engineering and Construction Corporation.
FEED work, which typically takes up to 16 months, is expected to be completed this year before ExxonMobil makes its final investment decision.
“The Rovuma LNG Phase 1 project represents a significant milestone for Mozambique, providing a major opportunity for economic growth,” McDermott stated.
The project involves the liquefaction and export of natural gas extracted from the offshore Area 4 fields, located near the Afungi Peninsula in Cabo Delgado.
The Area 4 consortium is led by ExxonMobil in partnership with Italy’s Eni and China National Petroleum Corporation (CNPC), holding a combined 70% stake in the project.
ExxonMobil’s vice president for external relations, Walter Kansteiner, confirmed in September that the company expects to complete technical designs within a year.
Initially planned to produce 15.2 mtpa, ExxonMobil has since increased the projected output to 18 mtpa. Arne Gibbs, ExxonMobil’s general manager in Mozambique, stated on May 3 that a final investment decision could be made by the end of 2025.
“The Rovuma LNG project will be the largest liquefied natural gas project in Africa and could be the largest project in African history,” Gibbs added.
Mozambique has three approved LNG development projects to tap into the vast natural gas reserves of the Rovuma Basin, among the largest in the world.
While ExxonMobil and Eni continue advancing their projects, TotalEnergies’ development remains suspended due to security concerns.
