Sign in Subscribe
Exxon Mobil Corp.

ExxonMobil Seeks Security Assurances for $30 Billion Gas Terminal in Mozambique

Strategic Insights

— 1 min read

Mozambique, which holds one of the world's largest natural gas deposits, is set to become a crucial player in the global energy market with ExxonMobil's proposed $30 billion gas terminal, the largest liquefied natural gas facility in Africa. The project, led by Exxon and Italian partner Eni, aims to capitalize on growing global demand for LNG. However, the construction and operation of the facility have been delayed due to security concerns stemming from an armed insurgency in the north-eastern Cabo Delgado region.

Key Takeaways:

  • ExxonMobil CEO Darren Woods met with Mozambique President Daniel Chapo to seek security assurances for the proposed gas terminal, citing concerns about an armed insurgency in the Cabo Delgado region.
  • The Rovuma LNG project, led by Exxon and Eni, has faced delays due to attacks by Islamic State-linked militants and has been jointly developing common facilities with TotalEnergies.
  • TotalEnergies declared force majeure following the attacks and was forced to delay its final investment decision on the Area 1 LNG plant.
  • The energy firm is now looking to resume work on the project as it sees improvement in the security situation in the region.
  • The ExxonMobil project is expected to make a significant impact on Mozambique's economy and the lives of its citizens, according to President Chapo.
  • The project faces challenges in securing funding due to some banks' refusal to lend for fossil fuel development projects.
  • Forces from Mozambique and Rwanda have sought to bolster security near the Afungi Peninsula, where the projects are located.
  • The Rovuma LNG project's final investment decision has been delayed from late 2025 to 2026.

Statistics:

  • $30 billion: The estimated cost of the proposed gas terminal in Mozambique.
  • 2021: Year in which an attack by Islamic State-linked militants at a nearby town forced Exxon to delay taking a final investment decision on the giant project.
  • $25 billion: Delayed investment decision on the Rovuma LNG project from late 2025 to 2026.
  • 1 trillion cubic meters: Mozambique's projected gas reserves.
  • 10%: Global demand for LNG, which the Rovuma LNG project aims to capitalize on.

Sources:

  • Financial Times ( )

Read more