Page 4 - GLNG Week 29 2022

GLNG AFRICA GLNG

ExxonMobil may opt for modular

construction of Rovuma LNG plant

PROJECTS THE US super-major ExxonMobil may opt to would reduce the time needed to complete the
use modular construction techniques to build LNG plant from more than five years to about
a natural gas liquefaction plant in Mozambique three years. “It’s a lot quicker and it’s the cheap-
rather than proceed with a more conventional est way to build LNG trains,” he told Upstream
approach, according to a report from Upstream Online. “You always need work at site; it’s just
Online. [that] the duration of the construction period is
Industry sources said late last week that Exx- less. So instead of five and half years for mega-
onMobil was keen to push the stalled Rovuma trains, you’re looking at three years.”
LNG project forward, in light of surging global Another source took a different view on costs,
demand for LNG. But they also noted that the saying it was possible that modular construction
US giant was concerned about timing, costs and might actually turn out to be more expensive
security, especially in light of the insurgency in than conventional methods. He did not explain
Mozambique’s northern Cabo Delgado Prov- his remark, but he did say that ExxonMobil
ince, which forced TotalEnergies (France) to might be willing to pay the higher price if modu-
halt construction and declare force majeure on lar construction turned out to be less vulnerable
its own project – Mozambique LNG, which tar- to attacks by insurgents than Mozambique LNG’s
gets gas fields in the same basin – last year. large-scale plant had been. The extra costs “may
Modular construction could help mitigate all have to be accepted,” he commented.
these concerns, the sources asserted. Meanwhile, one source pointed out that the
ExxonMobil had originally planned to build US super-major would have to make certain
Rovuma LNG’s liquefaction plant as a conven- adjustments if it adopted the modular approach.
tional onshore facility with two large-scale pro- Port facilities in Cabo Delgado will have to be
duction trains, each with a capacity of 7.8mn expanded to handle the incoming modules,
tonnes per year (tpy). The total cost of this since existing infrastructure does not have
scheme had been estimated at around $24bn, capacity adequate for this purpose, he explained
and the time needed for construction had been to Upstream Online.
estimated at five years or more. ExxonMobil has yet to make a final invest-
According to Upstream Online’s sources, ment decision (FID) on the Rovuma LNG pro-
ExxonMobil is now looking into the possibility ject. As of press time, it was not clear when it
of building a modular plant similar to the facil- might do so.
ities that Venture Global (US) has built in the The shareholders in the Rovuma LNG pro-
US, at Calcasieu Pass and elsewhere. A modular ject are Mozambique Rovuma Venture (MRV),
plant would consist of multiple medium-scale a joint venture owned by ExxonMobil (the oper-
production trains rather than one or two large- ator), Eni (Italy) and China National Petroleum
scale production trains, the sources said. It would Corp. (CNPC), with 70%; and Galp (Portugal),
be easier and cheaper to build, as each of its mod- KOGAS (South Korea) and ENH, Mozambique’s
ules could be pre-made, requiring less assembly national oil company (NOC), each with 10%.
and ground-up construction at the worksite in The partners are developing three sections of the
Mozambique, they stated. offshore Area 4 in the Rovuma basin.™
According to one source, this approach

P4 www. NEWSBASE .com Week 29 22•July•2022