AFRICA ( commonwealth Union ) _ Exxon Mobil has made public its aspirational intentions for restarting LNG production in Mozambique. After being halted due to an insurgent attack, French energy giant TotalEnergies wishes to resume the $20 billion Mozambique LNG project this year.
According to Bloomberg, the energy behemoth recently published an ad in Mozambique’s O Pas newspaper seeking expressions of interest in the design and construction of an LNG facility. The plant will be located in the Rovuma Basin in northern Mozambique and have a maximum annual output of 18 million tons.
An earlier project that was shelved due to the Islamist insurgency was only intended to have a yearly capacity of slightly more than 15 million tons. The China National Petroleum Corporation, Portugal’s Galp, South Korea’s Kogas, and Mozambique ENH are allegedly partners in Exxon Mobil’s new project.
The announcement follows TotalEnergies, a French company, saying in February that it was considering restarting its LNG export project in the region of Cabo Delgado. That endeavor was put on hold two years ago as a result of attacks by Islamists.
According to Bloomberg, LNG investments provide a fiscal lifeline for Mozambique, which is dependent on export earnings to pay its debts. Additionally, it is presently Africa’s largest private investment.
Due to fighters affiliated with Islamic State attacking near to the construction camp last year, TotalEnergies halted the project’s work and claimed force majeure. The circumstance has delayed the commencement until at least 2025. Additionally, the start of 13.1 mtpa’s complete production is scheduled for 2026.
Patrick Pouyanne, CEO of TotalEnergies, told Reuters that the company hopes to restart it this year. With the purchase of BP’s retail network, wholesale fuel business, and logistics assets, the firm is also growing in Mozambique. The business improves its standing in the nation with this acquisition.
