Mozambique approves Rovuma LNG development plan

The government of Mozambique has approved the development plan for the Rovuma LNG project led by Exxon and Eni. Two liquefied natural gas trains are planned with a combined annual capacity of over 15 million tons.

The project is designed to produce, liquefy and market natural gas from three reservoirs of the Mamba complex located in the Area 4 block offshore Mozambique, two of which straddle the boundary with neighboring Area 1.

Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), an incorporated joint venture owned by Eni, ExxonMobil, and CNPC, which holds a 70 percent interest in the Area 4 exploration and production concession contract. Galp, KOGAS and Empresa Nacional de Hidrocarbonetos E.P. each hold a 10 percent interest.

“The development plan approval marks another significant step toward a final investment decision later this year,” said Liam Mallon, president of ExxonMobil Upstream Oil & Gas Company. “We will continue to work with the government to maximize the long-term benefits this project will bring to the people of Mozambique.”

The Rovuma LNG partners have said they 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 tons of liquefied petroleum gas (LPG) per annum in Mozambique from Area 4 resources, which is currently about 50 percent of the country’s LPG imports, and will dramatically improve access to energy, the partners said in a statement on Tuesday.

According to Eni, 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.

“The expected production from the Area 4 block will generate substantial benefits for Mozambique and the Area 4 partners,” said Alessandro Puliti, Eni’s Chief Development, Operations & Technology Officer. “The development plan details our commitment to train, build and employ a local workforce and make gas available in support of Mozambique’s industrialization.”

LNG production from the project is expected to begin in 2024.

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