Mozambique approves Rovuma LNG development plan

Mozambique Rovuma Venture has secured approval from the Government of Mozambique for its development plan for the Rovuma liquefied natural gas (LNG) project.

Two LNG trains are planned to be constructed with a combined annual capacity more than 15 million tonnes.

Sales and purchase agreements for 100% of the LNG capacity for the two trains have been submitted to the government for approval.

The LNG project will produce, liquefy and market natural gas from three reservoirs in the Area 4 block offshore Mozambique. Two of the reservoirs straddle the boundary with neighbouring Area 1.

ExxonMobil Upstream Oil and Gas president Liam Mallon 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.”

Final investment decision is expected to be taken later this year.

The Rovuma LNG project will also build the local workforce through recruitment and skills development programme.

ExxonMobil and Italian oil and gas company Eni will jointly lead the marketing effort for the LNG produced from the Rovuma project.

Eni chief development, operations and technology officer Alessandro Puliti 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.”

During the production phase, the Rovuma LNG project is expected to provide up to 17,000 tonnes of liquefied petroleum gas (LPG) a year in Mozambique from Area 4 resources, which is currently 50% of the country’s LPG imports.

The Area 4 partners also plan to distribute 5,000 LPG burners and cooking stoves in the Afungi area to replace wood burning.

Mozambique Rovuma Venture (MRV), a joint venture of ExxonMobil, Eni and China National Petroleum Corporation (CNPC), operates Area 4 and holds a 70% interest in the Area 4 exploration and production concession contract.

Galp, KOGAS and Empresa Nacional de Hidrocarbonetos each hold a 10% interest.

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