By Toyin Akinosho
FID expected in 2019. First Gas Likely By 2024
Italian explorer ENI and US major ExxonMobil, say they have, along with co-venturers, secured sufficient offtake commitments “from affiliated buyers of the co-venture parties to move towards a final investment decision for the Rovuma LNG Project in Mozambique’s Area 4”
This is a “key milestone enabling the participants to rapidly move toward a final investment decision in 2019 on the first phase of the Rovuma LNG project. Area 4”, ENI says in a release. Participants are ExxonMobil, ENI, the China National Petroleum Corporation, Empresa Nacional de Hidrocarbonetos, Kogas and Galp.
“Those commitments are subject to the conclusion of fully-termed agreements, which will be finalized and initialed in the next weeks, with the approval of the Government of Mozambique”, ENI explains.
“The Rovuma LNG marketing team has worked at an accelerated pace to reach this important milestone, a tremendous achievement made possible by the strength of the Area 4 co-venture parties and the support of the Government of Mozambique,” adds Peter Clarke, president of ExxonMobil Gas and Power Marketing Company.
In July 2018, Mozambique Rovuma Venture submitted the development plan to the Government of Mozambique for the first phase of the Rovuma LNG project, which will produce, liquefy and market natural gas from the Mamba fields located in the Area 4 block offshore the Rovuma Basin in Mozambique. ExxonMobil will lead construction and operation of natural gas liquefaction and related facilities on behalf of the Area 4 joint venture,
while ENIwill lead the construction and operation of the upstream facilities.
The development plan for the first phase of the Rovuma LNG project specifies the proposed design and construction of two liquefied natural gas trains, which will each produce 7.6Million tons of LNG per year. Mozambique Rovuma Venture is currently holding productive discussions with the Mozambican Government on development plan details.
Massimo Mantovani, ENI chief gas and LNG marketing and power officer, said: “these commitments are an important step forward for the Rovuma LNG project and provide a solid foundation for securing project financing. This achievement highlights the strength of our partnership and commitment to developing Mozambique’s natural resources.”