Exxonmobil released yesterday an expression of interest for the FEED (Front End Engineering Design Services) and potential EPC suggesting an eminent return to the development of its Mozambique Area 4 LNG project.
The technical data on the document calls for the design and build of an LNG plant to process 18 million tons per year, a significant increase from the original project capacity of 15.2 million-ton project and presents a tight schedule as applications should be submitted by the end of the month.
The Area 4 block is operated by the Rovuma Venture S.p.A. (70% – ExxonMobil, ENI Spa, and CNPC) ENH (10%) KOGAS (10%), and Galp (10%). The considerable gas volumes initially in place (GIIP) identified in Area 4 of the Rovuma basin place it as one of the world’s most relevant regions for the future of natural gas production.
The Ukraine conflict among other factors seems to be sparking a rush toward natural gas as a favorite solution for energy security and energy transition. According to a market intelligence and competitive landscape report on the “LNG Market” by Maximize Market research, a global Energy and Power business-consulting firm, the LNG Market is expected to witness a significant growth rate over the forecasted period by providing relevant infrastructure to developing countries including Mozambique.
Exxon’s announcement follows the beginning of ENI’s Coral South floating LNG platform operations last November and TotalEnergies statement last month that is considering restarting its LNG project in Cabo Delgado province. Both TotalEnergies and ExxonMobil projects came were suspended two years ago following an attack by insurgents on the town of Palma, but over the past six months, a coalition of troops from Rwanda and the Southern African Development Community (SADC) helped Mozambican forces to liberate the area and to bring back its population.
Earlier this month, Victoria Kwakwa, the World Bank’s vice president for Eastern and Southern Africa, evaluated positively the return of life to the streets of Palma and Mocímboa da Praia, together with the gas projects, during a visit to Cabo Delgado, Mozambique.
Mozambique is showing strong signs of recovering from a period of 6 years of economic turmoil and despite strong domestic challenges, Fitch forecasts the eonomy to grow 6,55 this year.