Green light for Mozambique’s Rovuma LNG project

The government of Mozambique had approved the development plan for the Rovuma LNG project, which will produce, liquefy and market natural gas from three reservoirs located in the Area 4 block offshore Mozambique, two of which straddle the boundary with neighbouring Area 1.

The Rovuma LNG project will build the local workforce through focused recruitment and skills development. ‘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,’ says Ernesto Elias Max Tonela, Minister of Mineral Resources and Energy. ‘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.’

The marketing effort for the LNG produced from the Rovuma LNG project is jointly led by ExxonMobil and Eni. Sales and purchase agreements 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 15mn t/y of LNG.

Area 4 is operated by Mozambique Rovuma Venture (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 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.

The Rovuma LNG partners have developed a series of plans to support community development in line with the government’s priorities. During the production phase, the Rovuma LNG project expects to provide up to 17,000 t/y 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. The Area 4 partners also plan to distribute up to 5,000 LPG burners and cooking stoves in the Afungi area to replace the burning of wood.

For more on Mozambique LNG, see Petroleum Review’s April 2019 issue.