Page 10 - GLNG Week 42 2021

GLNG AFRICA GLNG

ExxonMobil board reportedly weighs

scrapping $30bn LNG project in Mozambique

PROJECTS & FOLLOWING a reshuffle on its board of direc- the company’s ability to uphold pledges to reduce
COMPANIES tors, ExxonMobil is debating whether to con- emissions, the newspaper said.
tinue with several major oil and gas projects, Rovuma LNG is already facing a number of
including the $30bn Rovuma LNG initiative in obstacles. ExxonMobil said last year that it had
Mozambique, the Wall Street Journal reported decided to delay a final investment decision
on October 20. (FID) on the project, citing concerns about
The US-based super-major’s board now low global energy prices and the impact of
includes three members nominated by an activ- the coronavirus (COVID-19) pandemic. It is
ist stakeholder that has pushed for restricting not expected to take this step until 2022 at the
investment in fossil fuels in order to limit carbon earliest.
emissions and return more cash to shareholders. Moreover, the US giant could delay fur-
The stakeholder in question is Engine No. 1, an ther (or abandon the $30bn plan altogether) if
activist investment fund formed earlier this year. security problems in Cabo Delgado, Mozam-
Discussions on the Rovuma LNG project are bique’s northernmost, intensify or persist.
taking place within the framework of a review TotalEnergies (France) suspended its own
of ExxonMobil’s five-year spending plan. The $20bn Mozambique LNG project earlier this
company’s board is slated to vote on the plan at year after a wave of attacks by Ahlu Sunnah
the end of October. Wa-Jamo (ASWJ), an Islamist militant group,
The review is also targeting another multi-bil- near the site where it has begun construction
lion-dollar gas project in Vietnam, according to on a gas liquefaction plant. And like TotalEn-
WSJ’s sources. ExxonMobil is working to deter- ergies, ExxonMobil has said it will build an
mine how much carbon each project is expected onshore processing facility in Cabo Delgado
to emit and how these projections might affect to process gas from its offshore licence area.™

ASIA

Japanese LNG inventories hit

highest level in five years

PERFORMANCE JAPANESE inventories of LNG have hit their they would make efforts to secure adequate sup-
highest level in five years as the country seeks to plies for the coming winter.
avert energy shortages over the coming winter. This year, competition on the spot mar-
The Japanese Ministry of Economy, Trade ket is already intensifying ahead of winter as
and Industry (METI) said this week that LNG countries reopen their economies following
stocks held by the country’s main power compa- pandemic-related lockdowns, energy demand
nies had reached 2.3mn tonnes by October 15, rises and supply challenges persist. Competi-
up by 700,000 tonnes year on year. LNG stocks tion in the spot market largely played out in
held by Japan’s city-gas suppliers exceed the aver- Asia last year, but this year it is set to be far
age at this time of the year from 2015-2019, the more widespread, with Europe already com-
ministry added. peting with Asia for gas supplies as it seeks to
The country is trying to avoid the situation replenish depleted stocks.
it experienced last year, when supply issues However, Japan appears to be in a strong
combined with rising demand as a result of cold position to avoid another power crunch even
winter weather to result in intense competition if the weather is colder than usual, according to
for spot LNG cargoes and record-high electricity METI, as long as utilities continue to buy fuel as
prices. The LNG inventory data were disclosed planned.
at a rare meeting between METI and the sen- A major factor in how things play out will be
ior executives of energy companies, which was the weather – in Japan and more broadly. Tem-
held to discuss measures to avoid a repeat of the peratures are already seasonally low in Japan,
shortages, according to Reuters. The executives according to the country’s weather bureau, even
are reported to have assured the government that though winter is still weeks away.™

P10 www. NEWSBASE .com Week 42 22•October•2021