ExxonMobil is "optimistic and moving forward" with the Rovuma liquefied natural gas (LNG) project in Cabo Delgado, according to a senior company source. 

The final investment decision could be made by the end of next year, a company official told Reuters yesterday.

ExxonMobil and Eni are developing the Rovuma LNG project in Area 4 offshore Cabo Delgado, with Exxon leading the construction and operation of the onshore liquefaction and related facilities, while Eni focuses on the Coral floating LNG and upstream operations.

When TotalEnergies declared force majeure in 2021 due to an offensive by Islamic State-linked insurgents who threatened its Mozambique LNG plant in Area 1, ExxonMobil was also affected due to the development of shared and common facilities, such as an LNG jetty and unloading facilities.

"We recognize that there are challenges and there are. We recognize that these challenges can be overcome if we work together," said Arne Gibbs, general manager of ExxonMobil Mozambique, at an energy conference in Maputo.

"My message is quite simple... We're optimistic, we're moving forward," he said of a project that should enter the early engineering and design (FEED) phase in a few months.

The project, initially planned for 15 million metric tons per annum (mtpa), has been redesigned into a new 18 mtpa modular LNG power plant that offers more flexibility and produces fewer harmful emissions, Gibbs said.

"It was important to change our design for a ready-made project, suited to the current business environment, including attention to CO2 and GHG (greenhouse gas) emissions," he added.

In March, Credit Agricole said it would not provide financing to two major LNG projects, including Rovuma, citing commitments to refrain from new fossil fuel developments.

Gibbs said the company recognizes that the security situation has improved significantly, due to the intervention of a regional military force, as well as Rwanda's military support for Mozambique. (Reuters)