Rovuma LNG Moves Toward FID in 2019

Friday, December 28, 2018

Partners in the Rovuma liquefied natural gas (LNG) project in Mozambique say they are moving “rapidly” toward a final investment decision (FID) for the first phase of the project in 2019 after securing LNG offtake commitments from buyers.

The project will produce, liquefy and market natural gas from the Mamba fields located in the Area 4 block in the Rovuma Basin offshore Mozambique. Area 4 participants are ExxonMobil, Eni, China National Petroleum Corporation (CNPC), Empresa Nacional de Hidrocarbonetos, Kogas and Galp.

In July 2018, Mozambique Rovuma Venture, an incorporated joint venture owned by ExxonMobil, Eni and CNPC, submitted the development plan to the government of Mozambique for the first phase of the Rovuma LNG project. 

ExxonMobil will lead construction and operation of natural gas liquefaction and related facilities on behalf of the Area 4 joint venture, and Eni will lead construction and operation of upstream facilities.

The development plan for the first phase of the Rovuma LNG project specifies the proposed design and construction of two liquefied natural gas trains, which will each produce 7.6 million tons of LNG per year. Mozambique Rovuma Venture is currently discussing development plan details with the Mozambican government.

The LNG offtake commitments remain subject to the conclusion of fully-termed agreements, which are expected to be finalized and initialed in the next weeks, and the approval of the government of Mozambique.

Peter Clarke, president of ExxonMobil Gas and Power Marketing Company, said, “The Rovuma LNG marketing team has worked at an accelerated pace to reach this important milestone, a tremendous achievement made possible by the strength of the Area 4 co-venture parties and the support of the government of Mozambique.”

Massimo Mantovani, Eni chief gas and LNG marketing and power officer, said, “These commitments are an important step forward for the Rovuma LNG project and provide a solid foundation for securing project financing. This achievement highlights the strength of our partnership and commitment to developing Mozambique’s natural resources.”

Mozambique Rovuma Venture S.p.A. holds a 70 percent participation interest in the Area 4 exploration and production concession contract alongside Empresa Nacional de Hidrocarbonetos, Galp and Kogas, each of which hold a 10 percent interest.

Categories: LNG Natural Gas Africa

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