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AfrOil PROJECTS & COMPANIES AfrOil

Rendering of Rovuma LNG onshore complex (Image: Galp)

ExxonMobil working to cut costs and

carbon emissions for Rovuma LNG project

MOZAMBIQUE EXXONMOBIL (US) is working to reduce the security conditions in Cabo Delgado, Mozam-
carbon footprint of its Rovuma LNG project bique’s northernmost province. “Essentially, we
while also cutting costs, Mozambique’s Energy are stopped until the situation improves,” he told
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.
members of the ExxonMobil delegation said TotalEnergies suspended the Mozambique LNG
that the company would incorporate carbon project earlier this year after a wave of attacks
capture and storage (CCS) technologies into by Ahlu Sunnah Wa-Jamo (ASWJ), an Islamist
Rovuma LNG to minimise greenhouse gas militant group, near the site where it had already
(GHG) emissions. They also stated that the begun construction on a gas liquefaction plant.
US giant was keen to work with TotalEnergies Like TotalEnergies, ExxonMobil has said it
(France), the operator of the Mozambique LNG will build an onshore processing facility in Cabo
consortium, in the hope of exploiting synergies Delgado to process gas from its offshore licence
between the two projects, he said. area. As such, Rovuma LNG will face some of
Co-operation has the potential to make both the same security risks as the French major.
projects cheaper as well as cleaner, he added. Equity in the Rovuma LNG consortium is
Tonela went on to say that Liam Mallon, the split between subsidiaries of ExxonMobil, with
president of ExxonMobil’s Upstream Oil & Gas 28%; Eni (Italy), with 28%; China National
division, had reassured Nyusi during the meet- Petroleum Corp. (CNPC), with 14%; Galp (Por-
ing that his company remained committed to tugal), with 10%; KOGAS (South Korea), with
Rovuma LNG. Mallon, who joined the minis- 10%; and Mozambique’s national oil company
ter at the November 4 press conference, made a (NOC) ENH, with 10%.
similar statement, saying that ExxonMobil was The partners will extract natural gas from
determined to move ahead with the project. an offshore site known as Area 4 and liquefy it
The ExxonMobil executive also pointed out, at an onshore LNG plant. This facility will have
though, that the pace of work on Rovuma LNG two production trains with a capacity of 7.6mn
had slowed greatly because of concerns about tonnes per year (tpy) each. ™

Week 45 10•November•2021 www. NEWSBASE .com P13