Abu Dhabi, UAESunday 9 August 2020

Exxon to invest in Africa’s biggest LNG project in Mozambique

Exxon’s project in the northern Cabo Delgado province will cost between $27bn and $33bn

Exxon will have 100 per cent interest in the operation of the blocks, with the acquisition of seismic data expected to commence in 2020. Reuters
Exxon will have 100 per cent interest in the operation of the blocks, with the acquisition of seismic data expected to commence in 2020. Reuters

Mozambique’s government said Exxon Mobil will sign off on a final investment decision for a Liquefied Natural Gas (LNG) project that could cost as much as $33 billion (Dh119bn) to build -- the biggest ever in Africa.

A ceremony marking the decision will take place on October 8 in Maputo, the capital of the southeast African nation, the Ministry of Mineral Resources and Energy said in a statement.

Exxon’s project in the northern Cabo Delgado province will cost between $27bn and $33bn, according to a report that Johannesburg-based Standard Bank Group published in March. The 15.2-million tonnes per year gas liquefaction and export project is even bigger than the one that Total is building nearby, and both will transform Mozambique’s $15bn economy.

“We look forward to progressing the Rovuma LNG project and working with the government to maximise the long-term benefits that this project will bring,” a spokesman for Exxon said in an emailed response to questions.

The final investment decision could boost President Filipe Nyusi’s chances in general elections scheduled a week later. A promise to develop the country’s natural gas industry has formed a big part of Mr Nyusi’s campaign.

Updated: October 6, 2019 11:42 AM

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