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Rovuma LNG development plan approved by Mozambique government

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LNG Industry,

The government of Mozambique has approved Mozambique Rovuma Venture’s development plan for the Rovuma LNG project, which will produce LNG using three reservoirs located in the Area 4 block offshore Mozambique, two of which straddle the boundary with neighbouring Area 1.

Liam Mallon, president of ExxonMobil Upstream Oil & Gas Co., said: “The development plan approval marks another significant step toward a final investment decision later this year.

“We will continue to work with the government to maximize the long-term benefits this project will bring to the people of Mozambique.”

Ernesto Elias Max Tonela, minister of mineral resources and energy, added: “This is the third development plan approved in this five-year period to enable the sustainable development of the huge natural gas reserves discovered in the Rovuma basin and represents the government’s commitment to ensure the implementation of projects that will drive the development of Mozambique.

“We want Mozambican entrepreneurs and Mozambicans to be the main beneficiaries of the various business opportunities made available by the multinationals because we believe that these companies should grow with the national businesses and with Mozambique.”

According to the statement by Mozambique Rovuma Venture, the marketing effort for LNG produced from the project is jointly led by ExxonMobil and Eni. Sales and purchase agreements (SPAs) for 100% of the LNG capacity for trains 1 and 2 have been submitted to the government of Mozambique for approval, which together will produce more than 15 million tpy of LNG.

Alessandro Puliti, Eni’s chief development, operations & technology officer, said: “The expected production from the Area 4 block will generate substantial benefits for Mozambique and the Area 4 partners.

“The development plan details our commitment to train, build and employ a local workforce and make gas available in support of Mozambique’s industrialisation.”

The Rovuma LNG partners have reportedly developed a number of plans to support community development in line with the government’s priorities. During the production phase, it is expected that the Rovuma LNG project will provide up to 17 000 tpy of LPG in Mozambique from Area 4 resources, which is currently about 50% of the country’s LPG imports, and will dramatically improve access to energy. In addition to this, the Area 4 partners are also planning to distribute up to 5000 LPG burners and cooking stoves in the Afungi area to replace the burning of wood.

Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), an incorporated joint venture owned by ExxonMobil, Eni and CNPC, which holds a 70% interest in the Area 4 exploration and production concession contract. Galp, KOGAS and Empresa Nacional de Hidrocarbonetos E.P., meanwhile, each hold a 10% interest.

ExxonMobil will lead construction and operation of natural gas liquefaction and related facilities on behalf of MRV, and Eni will lead construction and operation of upstream facilities.

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