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Rovuma LNG project on hold due to coronavirus and gas slump

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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.”

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