MAPUTO – ExxonMobil has doubled its interest in Mozambique’s proposed Rovuma liquefied natural gas project to 50% following an asset swap with Italy’s Eni, strengthening its position in one of Africa’s largest planned energy developments.
The Zimbabwe Mail, citing a report by Mozambican publication Club of Mozambique based on a statement issued on the transaction, said ExxonMobil had taken over Eni’s share in the project in exchange for other regional assets. ExxonMobil will remain the operator.
Located in the Rovuma Basin off Cabo Delgado province, the project is designed to produce 18.6 million tonnes of LNG annually, with development costs estimated at US$30 billion. A final investment decision is targeted for the end of 2026, while commercial operations are expected to begin in 2031.
The project partners have committed US$1.1 billion to long-lead subsea and equipment contracts ahead of the investment decision, according to the report. The expenditure is intended to support the development schedule, although it represents only an initial commitment against the overall project cost.
The Area 4 consortium also includes China National Petroleum Corporation, Korea Gas Corporation, ADNOC’s XRG and Mozambique’s state-owned Empresa Nacional de Hidrocarbonetos.
ExxonMobil’s increased stake gives the US energy group greater exposure to the project’s potential returns and capital requirements. Its progress remains significant for Mozambique’s ambition to become a major LNG exporter, although the investment decision, security conditions and construction timetable will be important determinants of when production can begin.
The development comes as energy buyers in Europe and Asia seek diversified sources of long-term gas supply amid changing global trade patterns.
