Skip to main content

Rovuma LNG project on hold due to coronavirus and gas slump

Published by
LNG Industry,


According to Reuters, it is looking likely that ExxonMobil will delay greenlighting its US$30 billion Rovuma LNG project in Mozambique due to the disruption caused by the coronavirus pandemic, and a depressed gas market.

On Tuesday, ExxonMobil reportedly said it was looking at making significant cuts in CAPEX and OPEX.

The Rovuma LNG project was expected to get the greenlight in 1H20, but three sources informed Reuters that Exxon’s partners wish to delay the final investment decision (FID). Another three sources added that any FID before the second half of the year was very unlikely.

According to Reuters, early works on the project are being heavily affected by travel restrictions. Key international workers that regularly travel to the project site on the Afungi peninsula in Cabo Delgado province are not able to get there.

One source added: “It seems as though they are electing to postpone some of the early stage works and contracts for now.

“I doubt we can expect their FID before the end of 2020.”

Read the article online at: https://www.lngindustry.com/liquefaction/23032020/rovuma-lng-project-on-hold-due-to-coronavirus-and-gas-slump/

You might also like

 STATS Group

[WEBINAR] Digital Shipbuilding: A Transparent and Real-Time View of the Fabrication Process is Possible

In this webinar, Ismo Piirainen and David Whittle of Hexagon PPM will be discussing the digitalisation and digital transformation trends driving Industry 4.0, especially when it comes to fabrication. Register for free today »

 
 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

LNG project news


 

LNG Industry is not responsible for the content of external internet sites.