Page 6 - GLNG Week 45 2021

GLNG AFRICA GLNG

ExxonMobil working to cut Rovuma

LNG’s costs, carbon emissions

PROJECTS & US-HEADQUARTERED ExxonMobil is work- security conditions in Cabo Delgado, Mozam-
COMPANIES ing to reduce the carbon footprint of its Rovuma bique’s northernmost province. “Essentially, we
LNG project while also cutting costs, Mozam- are stopped until the situation improves,” he told
bique’s Energy Minister Max Tonela has said. reporters in Maputo.
Speaking at a press conference in Maputo on He did not comment on reports that the
November 4, Tonela stated that representatives US super-major might wait until 2022 or later
of the US-based super-major had outlined plans to make a final investment decision (FID) on
for Rovuma LNG in a meeting with Mozam- the project. ExxonMobil decided to delay the
bican President Filipe Nyusi. “The company’s FID last year, citing concerns about low global
focus will be on reducing costs and redesigning energy prices and the impact of the coronavirus
the project to capture carbon dioxide,” he said, (COVID-19) pandemic.
according to a Reuters report. ExxonMobil is not the only LNG pro-
During the meeting, the minister explained, ject operator to have fallen behind schedule. The pace of
members of the ExxonMobil delegation said that TotalEnergies suspended the Mozambique
the company would incorporate carbon capture LNG project earlier this year after a wave of work on Rovuma
and storage (CCS) technologies into Rovuma attacks by Ahlu Sunnah Wa-Jamo (ASWJ), an
LNG to minimise greenhouse gas (GHG) emis- Islamist militant group, near the site where it LNG had slowed
sions. They also stated that the US giant was keen had already begun construction on a gas liq-
to work with France’s TotalEnergies, the opera- uefaction plant. greatly because
tor of the Mozambique LNG consortium, in the Like TotalEnergies, ExxonMobil has said it of concerns
hope of exploiting synergies between the two will build an onshore processing facility in Cabo
projects, he said. Delgado to process gas from its offshore licence about security
Co-operation has the potential to make both area. As such, Rovuma LNG will face some of the
projects cheaper as well as cleaner, he added. same security risks as the French major. conditions in
Tonela went on to say that Liam Mallon, the Equity in the Rovuma LNG consortium is
president of ExxonMobil’s Upstream Oil & Gas split between subsidiaries of ExxonMobil with Cabo Delgado.
division, had reassured Nyusi during the meet- 28%; Italy’s Eni with 28%; China National Petro-
ing that his company remained committed to leum Corp. (CNPC) with 14%; Portugal’s Galp
Rovuma LNG. Mallon, who joined the minis- with 10%; Korea Gas (Kogas) with 10%; and
ter at the November 4 press conference, made a Mozambique’s national oil company (NOC)
similar statement, saying that ExxonMobil was ENH, with 10%. The partners will extract natu-
determined to move ahead with the project. ral gas from an offshore site known as Area 4 and
The ExxonMobil executive also pointed out, liquefy it at an onshore LNG plant. This facility
though, that the pace of work on Rovuma LNG will have two production trains with a capacity
had slowed greatly because of concerns about of 7.6mn tonnes per year (tpy) each.™

P6 www. NEWSBASE .com Week 45 12•November•2021