ExxonMobil remains optimistic about its Mozambique LNG project despite challenges

ExxonMobil remains optimistic about its Mozambique LNG project despite challenges
ExxonMobil remains optimistic about its Mozambique LNG project despite challenges

“We recognize that there are challenges ahead. We recognize that these challenges can be met if we work together,” said Arne Gibbs, managing director of ExxonMobil Mozambique, at an energy conference in Maputo.

“My message is very simple… We are optimistic, we are moving forward”he added regarding the project which is expected to enter the preliminary engineering and design (FEED) phase in the coming months and which ExxonMobil is developing in partnership with Eni at Rovuma in offshore zone 4 in northern Mozambique .

ExxonMobil will be responsible for the construction and operation of the onshore liquefaction facilities and related infrastructure, while Eni will focus on the Coral floating LNG unit and upstream operations.

The project was delayed in 2021 when TotalEnergies declared force majeure following an offensive by Islamic State-linked insurgents that threatened its Area 1 LNG plant in Mozambique. ExxonMobil was also impacted by this delay due to sharing common facilities, such as a pier and an LNG offloading facility.

Originally planned for a capacity of 15 million metric tons per year (mtpa), the project has been redesigned to become a new 18 mtpa modular electric LNG plant, more flexible and producing fewer harmful emissions, Gibbs said .

“It was important to tailor our design to a plug-and-play project that complied with the current business environment, including CO2 and greenhouse gas (GHG) emissions.”he added.

In March, Crédit Agricole announced it would not finance two major LNG projects, including Rovuma, due to its commitment to no longer support new fossil fuel developments.

Mr. Gibbs acknowledged that the security situation had improved considerably thanks to the intervention of a regional military force and the military support provided by Rwanda to Mozambique.

ExxonMobil said in February that it was closely monitoring security developments in Cabo Delgado province, where militants linked to the Islamic State have launched a new wave of attacks this year.

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