Mozambique LNG Plan Clears Hurdle

Mozambique’s government has approved the development plan for the Rovuma LNG project, Mozambique Rovuma Venture S.p.A. partners Eni, S.p.A. and Exxon Mobil Corp. reported Tuesday.

The proposed project calls for designing and constructing two liquefaction trains that would produce more than 15 million tons per year of LNG. Gas would be sourced from three Mamba complex reservoirs in the Area 4 block of the deepwater Rovuma basin. According to ExxonMobil’s website, Area 4 holds more than 85 trillion cubic feet of gas and Rovuma LNG would help Mozambique “to become a leading regional LNG exporter and a major global energy player.”

“The expected production from the Area 4 block will generate substantial benefits to Mozambique and the Area 4 partners,” Eni Chief Development Operations & Technology Officer Alessandro Puliti said in a written statement emailed to Rigzone. “The development plan details our commitment to train, build and employ a local workforce and make gas available in support of Mozambique’s industrialization.”

MRV, which also includes CNPC, operates Area 4 and owns a 70-percent interest in the concession contract, stated ExxonMobil and Eni. The remaining Area 4 partners, which each hold 10 percent, include Galp, KOGAS and Empresa Nacional de Hidrocarbonetos E.P. Eni Rovuma Basin will oversee construction and operation of upstream facilities and ExxonMobil Moҫambique Limitada will spearhead construction and operation of liquefaction and related facilities, Eni and ExxonMobil reported.

“The development plan approval marks another significant step toward a final investment decision later this year,” Liam Mallon, president of ExxonMobil Upstream Oil & Gas Co., noted. “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, Mozambique’s minister of mineral resources and energy, stated that his government has now approved three plans plans to develop Rovuma basin gas reserves.

The approval “represents the government’s commitment to ensure the implementation of projects that will drive the development of Mozambique,” said Tonela. “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 business and with Mozambique.”

ExxonMobil and Eni stated that they will jointly lead the marketing effort for LNG produced from Rovuma LNG. They noted the sales and purchase agreements for 100 percent of the LNG capacity for trains 1 and 2 have been submitted to Mozambique’s government for its approval.