U.S. oil company ExxonMobil canceled on Thursday (30) a public presentation that had been scheduled to reaffirm its commitment to the Rovuma LNG project, in a ceremony that was to be attended by the President of the Republic, Daniel Chapo. The decision comes amid growing instability in Cabo Delgado province, where the megaproject is located.
The session, which had been eagerly anticipated, was expected to bring together company executives and members of the Mozambican government at a time when the country is seeking to regain momentum in the liquefied natural gas (LNG) sector. Valued at 30 billion USD (1.9 trillion meticais), Rovuma LNG is expected, once completed, to become the largest LNG export hub on the African continent. However, the final investment decision remains undefined, mainly due to the security situation in the north of the country.
According to the Financial Times, which broke the news, the deteriorating situation in Cabo Delgado may have been decisive in the cancellation of the presentation. The British publication cited reports of nighttime attacks on access routes near the project and calls from various organizations for major investments in the region to be reassessed.
“The security situation has worsened considerably,” said Andrew Bogrand, senior adviser at Oxfam. “There are reports of attacks on roads at night in the vicinity of the project. I can’t understand how anyone can seriously discuss the feasibility of an investment of this scale under such circumstances,” he added.
Extremist activity in Cabo Delgado continues to undermine Mozambique’s energy plans. Until a few months ago, the Rwandan military contingent operated alongside forces from the Southern African Development Community (SADC) to contain the insurgents. However, both forces have since withdrawn from the mission due to financial difficulties related to payment for their services. Recent data from ACLED indicate that, in the week ending October 26, at least 22 people lost their lives in violent incidents. Meanwhile, the United Nations High Commissioner for Refugees (UNHCR) estimates that around 100,000 people have fled their communities as a result of armed clashes and the persistent threat posed by Islamist groups.
Despite ExxonMobil’s withdrawal on this occasion, Mozambican authorities remain committed to reactivating the project, which is a central element of the country’s energy and economic strategy.
The Rovuma LNG project, located in Area 4 of the Rovuma Basin, is led by ExxonMobil and represents one of the largest investments ever planned in Mozambique, with an estimated value of 30 billion USD. However, the final investment decision remains on hold due to the instability in Cabo Delgado. Meanwhile, Area 1, operated by TotalEnergies, has shown signs of recovery with the lifting of the “force majeure” clause, reigniting optimism around Mozambique’s LNG sector.
Source: Diário Económico
