Exxon USD 30 Billion Mozambique LNG project Update

  • Exxon Mobil is looking to green its $30 billion liquefied natural gas (LNG) project in Mozambique via carbon capture technology, as well as cut costs for the development, Mozambique’s Energy Minister, Max Tonela, said last Thursday.

Tonela told journalists at a joint press conference with an Exxon representative that the U.S. oil major had explained its plans in a meeting with Mozambique President Filipe Nyusi.

Exxon’s is the biggest of three massive gas projects planned or underway in Mozambique’s northernmost province of Cabo Delgado, but the U.S. oil major has delayed its final investment decision following the COVID-19 pandemic and amid an Islamic State-linked insurgency in the region. Read more 

Executives have already said the company is still committed to the project – a point Exxon’s president of upstream oil and gas Liam Mallon reaffirmed to Nyusi in the meeting, Tonela told journalists.

“The company’s focus will be on reducing costs and redesigning the project to capture carbon dioxide,” he said, adding it would also seek synergies with TotalEnergies , developing a $20 billion project next door, in a bid to make it both cheaper and cleaner.

Mallon, who was present, said the meeting with Nyusi confirmed Exxon’s commitment to its project and that the dialogue had been constructive.

However, he added, the company regretted the security situation in Cabo Delgado. TotalEnergies’ was forced to declare force majeure in April this year amid wisespread terror attacks, some of which came close to the Alfungi site compound. Read more

“Essentially we are stopped until the situation improves,” Mallon said, adding that while there had been some progress more was needed.

Author: Bryan Groenendaal

Source: LUSA 

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