Mozambique approves Rovuma LNG development plan

Source: press release, 14 May 2019

Eni has been present in Mozambique since 2006, following the award of the exploration license relating to Area 4 offshore the Rovuma Basin block, located in the north of the country
Eni has been present in Mozambique since 2006, following the award of the exploration license relating to Area 4 offshore the Rovuma Basin block, located in the north of the country (photo: Eni)

Mozambique Rovuma Venture reports that the government of Mozambique had approved its development plan for the Rovuma LNG project, which will produce, liquefy and market natural gas from three reservoirs of the Mamba complex located in the Area 4 block in the Rovuma basin, two of which straddle the boundary with neighbouring Area 1.

“The development plan approval marks another significant step toward a final investment decision later this year,” says Liam Mallon, president of ExxonMobil Upstream Oil & Gas Company. “We will continue to work with the government to maximise the long-term benefits this project will bring to the people of Mozambique.”

The Rovuma LNG project will work to build the local workforce through focused recruitment and skills development.

“This is the third development plan approved in this 5-year period to enable the sustainable development of the huge natural gas reserves discovered in the Rovuma Basin and represents the Government’s commitment to ensure the implementation of projects that will drive the development of Mozambique,” says Ernesto Elias Max Tonela, Minister of Mineral Resources and Energy.

“We want Mozambican entrepreneurs and Mozambicans to be the main beneficiaries of the various business opportunities made available by the multinationals, because we believe that these companies should grow with the national businesses and with Mozambique,” adds Tonela.

The marketing effort for the LNG produced from the Rovuma LNG project is jointly led by Eni and ExxonMobil. Sales and purchase agreements for 100% of the LNG capacity for trains 1 and 2, which together will produce more than 15 million tons of LNG per annum, have been submitted to the government of Mozambique for approval.

“The expected production from the Area 4 block will generate substantial benefits for Mozambique and the Area 4 partners,” says Alessandro Puliti, Eni’s Chief Development, Operations & Technology Officer. “The development plan details our commitment to train, build and employ a local workforce and make gas available in support of Mozambique’s industrialisation.”

The Rovuma LNG partners have developed a series of plans to support community development in line with the government’s priorities. During the production phase, the Rovuma LNG project expects to provide up to 17,000 tons of liquefied petroleum gas (LPG) per annum in Mozambique from Area 4 resources, which is currently about 50% of the country’s LPG imports, and will dramatically improve access to energy. The Area 4 partners also plan to distribute up to 5,000 LPG burners and cooking stoves in the Afungi area to replace the burning of wood.

Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), an incorporated joint venture owned by Eni, ExxonMobil and CNPC, which holds a 70% interest in the Area 4 exploration and production concession contract. Galp, KOGAS and Empresa Nacional de Hidrocarbonetos E.P. each hold a 10% interest.

Eni Rovuma Basin will lead construction and operation of upstream facilities on behalf of MRV and ExxonMobil Moçambique Limitada will lead construction and operation of natural gas liquefaction and related facilities.