ExxonMobil bumps FID to 2026 while BP eyes startup by year’s end for their LNG mega-projects offshore Africa

Business Developments & Projects

The African Energy Chamber has shared updates on two liquefied natural gas (LNG) projects by global energy majors in African waters. One concerns the United States’ ExxonMobil, which has pushed the final investment decision (FID) for its project offshore Mozambique by one quarter, and the other the UK’s BP, which expects its development off the coast of Senegal and Mauritania to start producing later this year.

FPSO Tortue; Source: BP

ExxonMobil is spearheading the Rovuma LNG project situated in the deepwater Area 4 block within Mozambique’s Rovuma supergiant gas basin with partners in the Mozambique Rovuma Venture (MRV) – Eni and China National Petroleum Corporation (CNPC).

Said to represent one of the U.S. giant’s largest investments in Africa, the development is anticipated to produce 18 million tons per annum (mtpa) of LNG once completed, while the block is estimated to contain more than 85 trillion cubic feet of natural gas.

According to Frank Kretschmer, General Manager of ExxonMobil Mozambique, the company is targeting an FID by early 2026, whereas it was previously expected to be taken in 2025. 

In addition to the Eni-operated Coral Sul FLNG facility, the Area 4 development encompasses the planned Coral North FLNG and the Rovuma LNG onshore facilities. The Coral Sul development can produce up to 3.5 million tonnes per annum (mtpa) of LNG, the same as the proposed Coral North development is expected to do. Eni recently shared that the unit currently produces enough for a weekly shipment of LNG and a condensate one every two months.

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Following the call for potential contractors to compete for the engineering, procurement, and construction (EPC) in August, two front-end engineering design (FEED) contracts were handed out in September: one to JGC Holdings Corporation and Technip Energies and another to McDermott, Saipem, and China Petroleum Engineering and Construction Corporation (CPECC).

“Rovuma LNG is a concept that is outstanding from a technology perspective, and will significantly reduce greenhouse gas emissions. The construction phase will boost local businesses, create thousands of jobs and promote local skill development,” noted Kretschmer.

MRV holds a 70% interest in the concession, while the remaining 30% stake is split evenly between KOGAS, Empresa Nacional de Hidrocarbonetos (ENH), and, as of recently, ADNOC, after it inked a deal to acquire Galp’s 10% interest in May

ExxonMobil expects global gas demand to rise by 20% by 2050, driven by population growth and economic development in emerging markets. Against this backdrop, the firm estimates that 15 million BTUs per person per year are needed to ensure access to clean cooking, electricity, and the elimination of energy poverty. 

“All energy scenarios require a full suite of energy solutions. Delivering continued access to affordable energy and reducing emissions is the end equation. With our new low-carbon solutions, we are paving the way for a new carbon reduction industry,” said Kretschmer. “Our goal is to build a resilient, competitive upstream portfolio, and to do so, we will invest to scale.”

Meanwhile, BP’s Greater Tortue Ahmeyim (GTA) project in Senegal and Mauritania,  said to be the biggest in the UK firm’s portfolio, is moving from the construction and commissioning phases to first operation, with start-up expected later this year. Described as “groundbreaking,” the offshore LNG development is set to produce 2.3 mtpa over the next 20 years as part of its Phase 1 development.

The project features a floating production storage and offloading (FPSO) unit and what the UK firm says is one of the deepest subsea systems in the industry and on the continent, with wells in water depths of up to 2,850 meters.

Golar LNG’s FLNG Gimi reached the project location in January 2024, with FPSO Tortue arriving five months later. Gas is slated to be produced from an ultra-deepwater subsea system, then processed by the FPSO to remove heavier hydrocarbon components, after which it will travel via pipeline to the FLNG vessel at the Hub Terminal approximately 10 km offshore.

Source: BP

“The GTA project is complex, but innovative and full of opportunity. We had two sets of regulations to harmonize, but with the support of our partners, governments and regulators, we are working together to find practical solutions. We see first gas as the first step on a much longer journey,” remarked Dave Campbell, Senior Vice President at BP, Mauritania and Senegal.

“There’s no denying Africa’s importance in the energy system, both today and in the future. As we continue to build our relationships in Senegal and Mauritania, we focus on capacity building and finding the right opportunity to use local contractors. Today, we have 47 Mauritanian and Senegalese technicians participating in a bespoke four-year training program with bp, preparing them to be the next generation of engineers.”

While most of the gas is destined for export to international markets, some is expected to be allocated to help meet growing demand in the two host countries. BP’s partners on the project are Kosmos Energy, Société des Pétroles du Sénégal (PETROSEN), and Société Mauritanienne Des Hydrocarbures (SMH).

BP recently hired Kotug and its local Senegalese partner Maritalia to provide marine services on the project. Kotug intends to deploy four RAstar 32-meter azimuthing stern drive (ASD), IMO Tier-III compliant tugboats to support the offshore hub terminal, FLNG, and FPSO operations.

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