Exxon requests security guarantees for Mozambique gas project

Exxon is seeking direct support from the Mozambican government to secure its Rovuma LNG project, as Islamist violence continues to hinder investment in the country’s north.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

ExxonMobil Corporation has entered direct discussions with the president of Mozambique to obtain security guarantees for its Rovuma LNG project, estimated to cost $30bn. The American company has not yet made a final investment decision, primarily due to ongoing instability in the Cabo Delgado province.

Persistent security concerns in the region

The Rovuma LNG project, which is expected to have an annual production capacity of 18 million tonnes of liquefied natural gas, is located in a region affected by Islamist insurgency for several years. Increased attacks in the area previously led TotalEnergies SE to declare force majeure on its neighbouring LNG project after a massacre that killed several hundred people. That suspension, in place for four years, was only lifted earlier this year.

The partial stabilisation of the region has been supported by foreign military presence. Rwandan forces continue operations on the ground after the withdrawal of troops from the Southern African Development Community (SADC), prompted by funding shortfalls for the joint mission.

Project revival tied to state commitment

Darren Woods, ExxonMobil’s Chief Executive Officer, stressed the need to secure the region before committing any investment. According to sources close to the negotiations, the American company is requesting formal government guarantees to prevent further delays. These guarantees may include increased military or logistical support, which is seen as critical to the project’s viability.

Mozambique’s president confirmed the discussions, stating that the implementation of the Rovuma LNG project would significantly impact the national economy. However, no details have been provided on the exact security measures under consideration or a potential investment timeline.

Regional competition and signs of restart

The restart announced this week by TotalEnergies at its own site may signal a positive shift for Mozambique’s liquefied natural gas sector. Though separate, both projects are located in close proximity and depend on similar geopolitical conditions for development. In this context, Exxon’s public engagement with local authorities reflects efforts to revive a strategic energy project on the African continent.

The pressure to secure investments in the region is amplified by the economic potential of Rovuma LNG, which is set to become the largest liquefied natural gas export facility in Africa.

Trinity Gas Storage partners with Intercontinental Exchange to open two new trading points at its Bethel site, strengthening East Texas’s strategic appeal in the U.S. gas market.
The Egyptian government is accelerating the deployment of its gas network and the conversion of vehicles to CNG, strengthening infrastructure despite a decline in domestic production.
Warsaw has filled its natural gas storage capacity to the legal maximum, marking the highest level in the European Union as regulatory discussions on energy security intensify in Brussels.
Sempra divests a majority stake in Sempra Infrastructure Partners to a consortium led by KKR for $10bn, valuing the entity at $31.7bn, while launching phase 2 of the Port Arthur LNG terminal for $14bn.
A new three-year gas import agreement will be signed between Belgrade and Moscow, as Serbia’s energy ties face growing diplomatic scrutiny from the West.
The Sri Lankan government has frozen its plan to import liquefied natural gas from India due to a lack of operational storage, delaying the initial timeline by three years and affecting bilateral energy strategies.
European Union gas reserves reach 89.8 bcm, or 81.6% of capacity, just weeks ahead of the European Commission’s deadline to hit 90%.
BW Offshore reached First Gas on the BW Opal FPSO for the Barossa project operated by Santos, triggering 60% of the contractual dayrate and opening the operating phase under a long-term charter.
The European Commission proposes bringing forward by one year the ban on imports of Russian liquefied natural gas, as part of a new sanctions package backed by Washington.
The Cedar LNG project, 50.1% controlled by the Haisla Nation, marks a first in the global gas industry, supported by a record C$1,4bn ($1,03bn) loan.
Natural gas executives report delays due to turbines, steel and legal risk, even as federal approval timelines improve.
The European Commission is preparing a new sanctions package including an accelerated ban on Russian liquefied natural gas, with negotiations already underway among member states.
H2G Green Limited’s subsidiary completed the conversion of an industrial site from diesel to liquefied natural gas, marking a shift in local manufacturing energy demand.
Russian producer Novatek rerouted part of its gas condensate output to the port of Novorossiisk, following a temporary shutdown at its Ust-Luga complex after a drone attack caused a fire.
Despite gas stocks covering over 80% of winter needs, Kyiv must still import more to offset the impact of Russian strikes on energy infrastructure.
The European Commission and the United States plan to intensify their economic measures against Russia, targeting the energy sector and cryptocurrencies in a new sanctions package.
The consortium led by Adnoc ends its acquisition plans for Santos, the Australian liquefied natural gas supplier, citing commercial and contractual factors that impacted the evaluation of its offer.
Eskom must restart the entire administrative process for its Richards Bay gas plant after South Africa’s Supreme Court cancelled its permit, citing insufficient public consultation.
QatarEnergy, TotalEnergies and Basra Oil Company begin construction of the final infrastructure components of Iraq’s integrated gas project, mobilising more than $13bn in investments to modernise the country’s energy supply.
Texas-based utility CPS Energy acquires four natural gas power plants from ProEnergy for $1.39bn, strengthening its footprint in the ERCOT market with operational dual-fuel infrastructure.

Log in to read this article

You'll also have access to a selection of our best content.

[wc_register_modal]