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Frank Kretschmer, president of ExxonMobil Mozambique, confirmed this via his LinkedIn account last week.
“This milestone represents a crucial step towards developing what will become the largest LNG project in Africa and one of the continent’s most substantial investments,” he said.
He said the 18 mtpa Rovuma LNG project, sourced from Mozambique’s abundant offshore natural gas fields, is designed for “both efficiency and flexibility”.
“The updated electric LNG concept will incorporate 12 modular units, each capable of producing 1.5 million tons of LNG annually,” he said.
“This approach ensures increased capacity, enhanced value for all stakeholders, and reduced greenhouse gas emissions,” Kretschmer said.
Kretschmer did not provide further details.
Last month, Mozambique’s President Filipe Nyusi announced that ExxonMobil plans to decide on its Rovuma LNG onshore terminal in Mozambique by 2026.
Nyusi met with ExxonMobil’s upstream president Liam Mallon to discuss the onshore LNG project in Cabo Delgado.
Mozambique Rovuma Venture (MRV) is the operator of the deepwater Area 4 block in the Rovuma basin off Mozambique that would feed the planned LNG export plant on the Afungi peninsula from the Mamba reservoirs.
The joint venture is owned by Eni, ExxonMobil and CNPC, and holds a 70 percent interest in the Area 4 exploration and production concession contract.
In addition to MRV, Galp, Kogas, and Empresa Nacional de Hidrocarbonetos each hold a 10 percent interest in Area 4.
ExxonMobil is leading the construction and operation of the liquefaction and related facilities on behalf of MRV, and Eni is leading the construction and operation of the upstream facilities.
FEED phase expected to take around 16 months
According to a separate statement issued by the partners, this FEED phase is expected to take around 16 months and is the last step before a final investment decision (FID).
The statement also did not reveal the contractors for the FEED phase.
Technip Energies CEO Arnaud Pieton recently confirmed that “there is a FEED competition ongoing in Mozambique and we are one of the two contenders.”
LNG Prime contacted Technip Energies to comment on the Rovuma LNG FEED, but we did not receive a reply by the time this article was published.
Delayed project
Back in 2019, the JV awarded a contract for the engineering, procurement and construction for the Rovuma LNG onshore production complex to a consortium made up of JGC, Fluor, and TechnipFMC (JFT).
This award enabled the start of activities for the Rovuma LNG project, but the project has been delayed for years due to the Covid-19 pandemic and security concerns, and the partners did not take a final investment decision.
However, ExxonMobil, Eni, and their partners resumed the development of the giant project said to be worth more than $22 billion.
In the meantime, Mozambique also became an LNG exporter. In 2022, Eni’s 3.4 mtpa Coral Sul FLNG located offshore Mozambique shipped its first cargo of liquefied natural gas.
This project receives supplies from the Coral South reservoir in Area 4 and Eni and its partners are planning a second floating LNG producer as well.
TotalEnergies is also working to restart work on its giant $20 billion Mozambique LNG export project after it declared force majeure on the project in April 2021 and withdrew all personnel from the site due to new attacks.