Mining & Energy
Anadarko decides to invest in Rovuma: We need to manage expectations better - Nyusi
Exxon Mobil Corp. awarded a JGC Corp.-led group a contract to develop its Mozambique liquefied natural gas project, that’s set to be the biggest ever private investment in Africa. [Image: Bloomberg]
Exxon Mobil Corp. awarded a JGC Corp.-led group a contract to develop its Mozambique liquefied natural gas project, that’s set to be the biggest ever private investment in Africa.
JGC will be joined by Fluor Corp. and TechnipFMC Plc to develop the Rovuma LNG project, Exxon Senior Vice President for LNG Peter Clarke said in a speech Tuesday in the Mozambican capital, Maputo. The project will cost between $27 billion and $33 billion, according to March estimates by Johannesburg-based Standard Bank Group Ltd.
A final investment decision on the Rovuma project is expected next year, and production will probably start in 2025, Clarke said.
Rovuma’s planned output is 15.2 million tons of LNG per year, higher than a nearby project that Total SA is developing with capacity of 12.9 million tons. Mozambique, one of the world’s poorest countries, is looking to the projects to uplift its $15 billion economy.
Exxon’s announcement comes before the southeast African nation holds a vote next week in which President Filipe Nyusi is seeking re-election. Nyusi, whose campaign will be boosted by progress on gas investments, has struggled to quell an insurgency that’s rocked the gas-rich region over the past two years, threatening the projects.
By Matthew Hill and Borges Nhamire
Signing of engineering, procurement &construction contracts for Rovuma #LNG in 🇲🇿 today
With capacity to produce 15.2 million tonnes of gas a year by 2025 it will be the largest LNG project in Africa.
— UK in Mozambique (@UKinMozambique) October 8, 2019
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