Uncertain future of gas in Mozambique: ExxonMobil yet to set investment date for Area 4
Arne Gibbs, the General Manager of ExxonMobil in Mozambique, overseeing the Rovuma LNG project in Area 4 of the Rovuma Basin in Cabo Delgado, stated that there is still no set date for the final investment decision. This step is crucial for the advancement of the liquefied natural gas exploration project.
Despite the absence of a specific date, Gibbs acknowledged significant improvements in security in the region where the project is to be implemented, compared to previous years.
These observations were shared after a meeting in Pemba, where the ExxonMobil director met with the President of the Republic of Mozambique, Filipe Nyusi, to discuss the progress of the Rovuma LNG operations.
"I acknowledge the remarkable effort of the Defense and Security Forces in Cabo Delgado. The current security situation is more favorable than in previous years," said Gibbs.
However, Gibbs admitted that challenges related to security persist, though the joint efforts of the Mozambican Defense and Security Forces with Rwandan forces have made significant strides in stabilizing the region.
ExxonMobil, through its Rovuma LNG project, has maintained its operations in Cabo Delgado, developing projects in close collaboration with TotalEnergies, which had suspended its activities due to security concerns.
Gibbs also highlighted ExxonMobil's commitment to working with the Mozambican government to maximize the use of local content by national companies, anticipating the return of TotalEnergies' operations and the eventual final decision on Area 4.
The success of these projects is vital for the Mozambican economy, with Area 1 targeting a production of 13.12 million tonnes per year (mtpa) and the onshore plan for Area 4 aiming for 15 mtpa. Together, these projects could reach a production capacity of approximately 31.5 mtpa.
According to Deloitte, Mozambique's natural gas reserves represent a revenue potential of around 100 billion dollars, underscoring the crucial role of these investments in the country's economic future.
