Mozambique: Start of Cabo Delgado LNG project depends on security – ExxonMobil

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Mozambique: Start of Cabo Delgado LNG project depends on security – ExxonMobil

12:42 CAT | 23 Sep 2025

File photo: Lusa

ExxonMobil’s general manager in Mozambique has stated that the start of gas production in Cabo Delgado, scheduled for 2030, depends on improvements to the security situation in the province, which has been the scene of terrorist attacks since 2017.

“The end of the conflict is crucial to ensuring a sustainable development environment,” said Arne Gibbs, general manager of ExxonMobil in Mozambique, during the opening of the 10th Mozambique Gas and Energy Summit and Exhibition, which began Monday in Maputo.

The official acknowledged the increased stability provided by the Mozambican Defence and Security Forces (FDS) in Cabo Delgado, a gas-rich province plagued by armed attacks since 2017.

Gibbs confirmed that, following the lifting of the force majeure clause —initially triggered in 2021 by TotalEnergies, leader of the Area 1 consortium—and improvements in security, ExxonMobil, which will operate in Area 4 of the Rovuma Basin, expects to begin operations in 2029/2030. Initial investments are expected to exceed US$300 million (€254.2 million), including infrastructure expansion in Afungi and the creation of at least 400 direct jobs for Mozambicans.

He reiterated that the Final Investment Decision (FID) will only be possible after the lifting of the force majeure clause that halted operations in Area 1, as both projects are interconnected.

“We believe Mozambique’s future in the energy sector is bright. With stability and cooperation, this will be a transformative milestone—not only for the country, but for the entire region,” said Gibbs, also expressing a desire for Mozambican companies to participate in the project.

In October 2024, ExxonMobil selected the U.S.-based firm McDermott to lead a consortium tasked with preparing the engineering design for its mega gas project in Mozambique. The design is scheduled to be completed this year, ahead of the final investment decision.

According to McDermott, the company was selected to head the consortium alongside Saipem and China Petroleum Engineering and Construction Corporation. The consortium was given up to 16 months to complete the Front-End Engineering Design (FEED) for the Rovuma LNG project.

“The Rovuma LNG Phase 1 project represents a significant development for the country and offers a major opportunity for economic growth. The project includes the liquefaction and export of natural gas extracted from the Offshore Area 4 fields off the Afungi Peninsula in Mozambique.,” McDermott said in a statement.

The Area 4 consortium includes ExxonMobil, Italy’s Eni, and China National Petroleum Corporation (CNPC), which collectively hold a 70% stake in the Area 4 Exploration and Production Concession Agreement.

Exxon’s Cabo Delgado project was initially expected to produce 15.2 million tons of LNG per year, but that estimate has since been revised upward to 18 million tons.

On May 3, Arne Gibbs said the investment decision could be made by the end of 2025, noting that Rovuma LNG would be “the largest liquefied natural gas (LNG) project in Africa, and could be the largest project in African history.”

In March, credit rating agency Fitch said that the resumption of TotalEnergies’ LNG project in Mozambique this year would “facilitate” ExxonMobil’s long-awaited decision on its own megaproject in the north of the country.

Mozambique has three approved development projects to exploit the Rovuma Basin’s natural gas reserves, which are among the largest in the world. All are located off the coast of Cabo Delgado. TotalEnergies’ project, which remains on hold due to security concerns, is also located on the Afungi Peninsula, along with ExxonMobil’s.

Source: Lusa