ExxonMobil announced today, in New York, the start of the technical phase of its natural gas extraction project in northern Mozambique, with technical design expected to be completed within a year. Walter Kansteiner, vice-president of the US oil company, pointed out that the Front End Engineering Design (FEED) process will take around 12 months and that the company is optimistic about the progress to be made.
The project, located in Cabo Delgado province, which is facing significant challenges due to terrorist attacks, initially planned to produce 15.2 million tons of gas per year. However, current estimates point to an annual production of 18 million tons. In August, Mozambique’s president, Filipe Nyusi, said that ExxonMobil should only make a decision on the investment in 2026, following a meeting with Liam Mallon, president of ExxonMobil Upstream.
Nyusi emphasized that the discussions revolved around the initial phase of the project, with plans to finalize the necessary approvals and reach the Final Investment Decision by 2026. The president stressed that this project has the potential to be one of the least polluting initiatives in the liquefied natural gas sector and is crucial for the country’s energy future.
Arne Gibbs, ExxonMobil’s general manager in Mozambique, reaffirmed that the preliminary engineering and design work has been completed and that the team will begin implementation in the coming months. Gibbs also noted significant improvements in the security situation since work was halted in March 2021 due to the insurgency in the region.
Mozambique has three approved projects to exploit the vast natural gas reserves in the Rovuma basin, recognized as among the largest in the world. Nyusi called on the concessionaires, including TotalEnergies, to speed up the development of the projects, pointing out that the delay in realization generates high expectations among the local population. He criticized the idea that the financial decision could delay implementation, stating that the security situation cannot be an obstacle to the execution of such a crucial project for the country.
With these statements, it is clear that the Rovuma LNG project represents not only a great economic opportunity for Mozambique, but also an ongoing challenge that needs to be managed carefully to ensure that the population’s expectations are met.
