President Daniel Chapo announced on Wednesday (12) that the restart of the Mozambique LNG project, led by TotalEnergies, is creating favorable conditions for ExxonMobil to move forward with its Final Investment Decision (FID) by July next year.
Speaking at the opening ceremony of the 20th Annual Private Sector Conference (CASP) in Maputo, the Head of State emphasized the importance of cooperation between the two international consortia operating in the Rovuma Basin, northern Mozambique.
“In our discussions with ExxonMobil in Houston, it became clear that with the relaunch of the TotalEnergies project — which involves shared infrastructure — ExxonMobil is also ready to move forward. We therefore expect that by mid-next year, no later than July, the investment decision will be made,” said Chapo.
The potential green light for ExxonMobil’s project represents an investment of about 1.9 trillion meticais ($30 billion), focused on the production and export of Liquefied Natural Gas (LNG) from Area 4 of the Rovuma Basin, with a projected capacity of 18 million tons per year (mtpa) — the largest planned in Africa.
The announcement of TotalEnergies’ project relaunch, suspended since 2021 due to armed violence in Cabo Delgado, was made official in October following the lifting of the “force majeure” clause. According to the President, this decision is restoring investor confidence and may unlock new strategic developments in the sector. “Security has improved considerably, and the Government is working hard to ensure stability and create conditions for major investments to move forward. Our commitment to our partners is total,” Chapo assured.
In October, Darren Woods, ExxonMobil’s CEO, also confirmed that the company is reassessing Mozambique positively, saying at an investor conference that “the project’s outlook is now very good” and that “relations with the Mozambican government are very strong.”
The ExxonMobil-led consortium, which includes Italy’s Eni and China’s CNPC, holds 70% of the Area 4 concession. The project’s resumption involves shared infrastructure with the TotalEnergies onshore complex in Afungi Peninsula.
Currently, the only operating project in the Rovuma Basin is managed by Eni, through the Coral Sul floating platform, which began production in 2022 with an annual output of 7 mtpa. The Italian company recently approved the Coral Norte platform, expected to double capacity by 2028, in a $7.2 billion (455 billion meticais) investment.
Mozambique now has three approved LNG megaprojects, among the largest in the world. According to Deloitte, the country could generate over 6.3 trillion meticais ($100 billion) in total revenues over their production cycles.
The three-day CASP conference includes bilateral sessions with representatives from the European Union, United Arab Emirates, African Continental Free Trade Area, and Brazil. It also features a “Market Place” — a networking platform to connect producers, importers, distributors, and suppliers of raw materials.
The 20th CASP edition aims to strengthen ties between the State and the private sector to revitalize the national economy through reforms that boost competitiveness, attract investment, and promote sustainable, inclusive, and resilient growth.
Text: Felisberto Ruco
