Exxon has secured long-term purchasing commitments for liquefied natural gas from its Rovuma project in Mozambique, moving closer to a final investment decision on a facility that will add as much as 15.2 million tons of LNG to global capacity.
In a statement, the oil supermajor, which also has significant plans in the liquefied natural gas area, said the commitments are awaiting finalization and will then need to get the approval of the government of Mozambique. Once this is done, Exxon and its partners in the project will move forward with the final investment decision on the project. Production is slated to begin in 2024.
Exxon has extensive participation in LNG projects around the world, including in Qatar, the world's biggest producer and exporter of the commodity that is seen as the bridge fuel between the fossil fuel and the renewable energy eras. Exxon also has a stake in Chevron's Gorgon project in Australia, one of the largest globally, and is the operator of the PNG LNG facility in Papua New Guinea.
According to the company, it has stakes in LNG capacity totaling more than 65 million tons per year. Mozambique is a hot spot for LNG hopefuls right now, with the country believed to be home to some of the most abundant natural gas reserves. S&P Global Platts reports that Mozambique could become the third-largest LNG producer in sub-Saharan Africa in a few years, with total planned capacity to be added standing at 25 million tons per year, as per Wood Mackenzie calculations.
In the Rovuma project, Exxon has partnered with Italy's Eni, China's CNPC, and the Mozambican state oil and gas company with a minority stake. It is in direct competition with a U.S. oil independent, Anadarko, which is also set to make a final investment decision on its Mozambican venture, Area 1, in 2019.
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry. More