LNG project offshore Mozambique one step shy of FID

The operator of a deepwater block off the coast of Mozambique, Mozambique Rovuma Venture (MRV), comprising ExxonMobil, Eni, and China National Petroleum Corporation (CNPC), has taken the last step before making a final investment decision (FID) by inking front-end engineering design (FEED) contracts enabling potential contractors to compete for the engineering, procurement, and construction (EPC) of the country’s proposed liquefied natural gas (LNG) project.

The final move made for the Area 4 block exploration and production concession contract before FID  is expected to last around 16 months. The concession within the Rovuma supergiant gas basin encompasses the operational Coral Sul FLNG facility, which Technip delivered to Eni in January, the planned Coral North FLNG development, and the Rovuma LNG onshore facilities, with the last two both expected to be sanctioned during 2024/25.

Frank Kretschmer, President of ExxonMobil Mozambique, noted: “The award and execution of the FEED contracts is a meaningful step forward to developing the world-class Rovuma LNG project. We will continue to work with the Government to maximize the long-term benefits this project will bring to the people of Mozambique.”

The Coral South 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. On the other hand, the 18-mtpa Rovuma onshore LNG development will have a modular, electric-drive design, with 12 1.5 mtpa modules fabricated offsite and assembled at Afungi, Mozambique. In addition to reducing on-site presence and execution risks, the design is projected to reduce GHG emissions during liquefaction.

Based on ExxonMobil’s estimates, the Area 4 block contains approximately 85 trillion gross cubic feet of natural gas. MRV holds a 70% interest in the concession, and 10% interests are held by KOGAS, Empresa Nacional de Hidrocarbonetos (ENH), and, as of recently, ADNOC, after it inked a deal to acquire Galp’s 10% interest in May. 

Apart from LNG, the UAE giant has been exploring carbon capture and storage (CCS) opportunities. The firm recently signed a joint study and development agreement (JSDA) with Petronas and Storegga to look into the CO2 emissions storage capabilities of saline aquifers and the construction of CCS facilities offshore Peninsular Malaysia.