- ExxonMobil says the Rovuma LNG project in Mozambique could reach a final investment decision in the second half of this year, with potential long term state revenues of up to 150 billion US dollars over 30 years.
- The company argues that a revised modular design will unlock greater LNG output through economies of scale, while also generating early fiscal benefits for Mozambique during the construction phase.
The Rovuma LNG development led by ExxonMobil in the Rovuma Basin in Cabo Delgado province is moving closer to a final investment decision, which is expected in the second half of this year. If approved, the project could generate as much as 150 billion US dollars in revenue for the Mozambican state over a 30-year period.
This outlook was presented by ExxonMobil Mozambique general manager Arne Gibbs at the 12th Mozambique Mining and Energy Conference and Exhibition in Maputo. He confirmed that a revised project development plan was submitted to the government in April and said the updated concept is designed to significantly increase production capacity while improving efficiency.
According to Gibbs, the redesigned approach is centred on a modular development model that allows for higher volumes of liquefied natural gas to be produced at optimised cost. He said economies of scale are central to the project’s commercial rationale, arguing that larger output for the same investment base strengthens overall project economics.
ExxonMobil maintains that Rovuma LNG could be the largest LNG project ever developed in Africa, following two years of engineering work that led to the revised concept. The company says the changes mark a decisive shift in the project’s technical design and commercial potential.
Gibbs also indicated that the fiscal benefits for Mozambique will not be limited to the production phase. He said government revenues would begin during construction through taxation, fees and increased participation by the domestic banking sector, challenging the perception that benefits only materialise once gas production starts.
The company reiterated its commitment to reaching a final investment decision in the second half of this year.
Author: Bryan Groenendaal
