Exxon Mobil and CNPC considering resuming LNG project in Mozambique

 

Exxon Mobil Corp. is considering resuming its liquefied natural gas project in Mozambique, where it partners with China´s CNPC and ENI.

In a statement published in Mozambican newspaper O Pais, the US energy giant, major shareholder in the Cabo Delgado Area 4 joint-venture, called for expressions of interest to design and build an LNG plant producing as much as about 18 million tons a year, above earlier plans that envisaged a 15.2 million-ton project.

Exxon’s announcement comes after TotalEnergies, that leads the Area 1 joint-venture, said last month that it’s considering restarting its own LNG export venture Mozambique’s Cabo Delgado province.

Comment: Total Pullback From Mozambique LNG Delays Exxon/CNPC Project

Both projects were halted two years ago following an attack on the town of Palma, but the security situation has improved since.

Despite the complex sharing agreement between the two consortia, Area 4 has not yet formalized the final investment decision (FID) and maintains the ability to adapt to the decision that will be taken by Total.

On the other hand, the Coral Sul FLNG floating platform does not depend on the Afungi complex and has already started production, generating much needed income for the government.

CPNC and partners eyeing second offshore LNG platform in Mozambique

The size of Coral Sul FLNG project is small compared with Area 1 and 4.

The LNG projects offer an economic lifeline for impoverished Mozambique, with potential investments exceeding the southern African nation’s annual output. The government has also been counting on LNG export revenues to service its debt, including a USD 900 million eurobond.

 

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