Mozambique approves Rovuma LNG development plan

The government of Mozambique has approved the development plan for the Rovuma LNG project, according to Mozambique Rovuma Venture.

May 14th, 2019

Offshore staff

MAPUTO, Mozambique – The government of Mozambique has approved the development plan for the Rovuma LNG project, according to Mozambique Rovuma Venture.

This will produce, liquefy, and market natural gas from the deepwater Mamba fields in the Rovuma basin 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 ExxonMobil, Eni and CNPC, which holds a 70% interest in the Area 4 exploration and production concession contract. Galp, KOGAS, and Empresa Nacional de Hidrocarbonetos E.P. each hold a 10% interest.

ExxonMobil will lead construction and operation of natural gas liquefaction and related facilities on behalf of MRV, and Eni will lead construction and operation of upstream facilities.

The marketing effort for the LNG produced is jointly led by ExxonMobil and Eni. Sales and purchase agreements for 100% of the LNG capacity for trains 1 and 2 have been submitted to the government of Mozambique for approval, which together will produce more than 15 million tons of LNG per year.

A final investment decision is expected later this year.

The Rovuma LNG project partners will work to build the local workforce through focused recruitment and skills development.

Ernesto Elias Max Tonela, Minister of Mineral Resources and Energy, said: “This is the third development plan approved in this five-year period to enable the sustainable development of the huge natural gas reserves discovered in the Rovuma basin and represents the government’s commitment to ensure the implementation of projects that will drive the development of Mozambique.

“We want Mozambican entrepreneurs and Mozambicans to be the main beneficiaries of the various business opportunities made available by the multinationals because we believe that these companies should grow with the national businesses and with Mozambique.”

The Rovuma LNG partners have developed a series of plans to support community development in line with the government’s priorities. During the production phase, the project expects to provide up to 17,000 tons of liquefied petroleum gas (LPG) per year in Mozambique from Area 4 resources, which is currently about 50% of the country’s LPG imports. 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.

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