ExxonMobil’s chief executive sought security assurance from Mozambique’s government in bid to construct Africa’s largest LNG plant. The firm is seeking counsel about security for the proposed $30 billion gas terminal in the African nation. However, this comes amid jihadist insurgency as the country aims to come to a decision to greenlight the project. Darren Woods raised with Chapo the dangers posed by the insurgency in Mozambique’s noth-eastern Cabo Delgado.
The region is where Exxon aims to establish the plant, poised to be the continent’s largest liquefied natural gas (LNG) facility. They also discussed plans by TotalEnergies to resume work on a nearby LNG facility being developed by the firm. Mozambique aims to lift a force majeure declaration that was issued four years ago following a deadly attack by Islamists in the region. Exxon, the US oil major, is the operator of the Rovuma LNG, a joint venture backed by Italian giant Eni and China’s CNPC.
Project Factsheet
Importance:
- Proposed $30 billion Cabo Delgado liquefied natural gas (LNG) terminal in Mozambique.
- Will be Africa’s largest LNG plant.
- Expected to fundamentally reshape Mozambique’s economy and energy export profile.
Facilities:
- Rovuma LNG project to be developed in partnership with Eni and CNPC.
- Located within the gas-rich Rovuma Basin, targeting large offshore reserves.
- Capacity strategically planned with a view to positioning Mozambique as an LNG global hub.
Developer/Consortium:
- Owned by ExxonMobil, with partners Eni (Italy) and China National Petroleum Corporation (CNPC).
- Pipelined into TotalEnergies’ standalone $20 billion Mozambique LNG venture in the same region.
- Supported by the Government of Mozambique under President Daniel Chapo.
Funding/Timeline:
- Project investment estimated at $30 billion.
- Project timeline pushed back due to insurgency-related security threats in Cabo Delgado.
- Investment choice held up for security guarantees; engagement with Mozambique government in progress.
- Restart of TotalEnergies’ Mozambique LNG project planned as a stepping stone for the revival of Rovuma LNG.
State of Affairs Regarding Africa’s Largest LNG Plant and Other LNG Projects in Mozambique
The nature of security in Mozambique is making it hard for decisions on Africa’s largest LNG plant and other plants to take time. Work on Rovuma LNG and Total’s Mozambique LNG project has been on hold since a massacre of 800 people. The atrocities were committed by Islamist militants seeking control of the town of Palma in 2021. However, Total is now seeking to restart its $20 billion project in the belief the security in the region has improved. Recently, the company launched a new road project in Palma, signifying that the Mozambique LNG project is ready to resume.
The meeting between Woods, Exxon’s head of upstream Dan Ammann and Chapo took place on the sidelines of the UN General Assembly in New York. In an emailed statement, President Chapo noted that the ExxonMobil project, if implemented, will be elemental to the country. For instance, he noted it would make a difference in Mozambique’s economy and the life of Mozambicans.
A spokesperson from Exxon noted that the company was working closely with Total, the Mozambique government, and its partners in the Rovuma project. Their aim is to ensure the right conditions are met to enable a final investment decision on the current development and the $30 billion LNG project, reflecting the same cautious strategy seen when ExxonMobil paused its $10 billion plastics plant in Texas amid shifting market headwinds.
