XOM makes 1st investment decision on Rovuma LNG

ExxonMobil (XOM) announced Tuesday an “initial investment decision” on the Rovuma LNG project in Mozambique, instead of the expected final investment decision, Kallanish Energyreports.

Peter Clarke, head of ExxonMobil’s Gas & Power Marketing, said during a ceremony in Maputo the company would invest over $500 million in the initial construction phase of the liquefaction project in Cabo Delgado. The Area 4 partners, which include CNPC, Eni, Galp, Kogas and ENH, will advance midstream and upstream area project activities, he said.

The U.S. oil supermajor awarded an engineering, procurement and construction contract to the consortium formed by Japan’s JGC, TechnipFMC and Fluor Corp to develop the project’s onshore facilities. According to Nikkei, the EPC contract is worth $9.2 billion.

Estimated to cost roughly $30 billion, Rovuma LNG is designed to produce 15.2 million tonnes per annum (Mtpa) of LNG beginning in 2025. But the FID rumored to be announced this week will come in early 2020, Clarke said.

The Mozambican government had said the FID would be made during the ceremony, causing industry speculation.

An ExxonMobil spokesman told Kallanish Energy the company wouldn’t comment on third-party announcements and the timing for the FID “will be based upon the successful implementation of effective security measures, along with finalizing lender financing.

“This is a complex project that will be developed over several years,” he added. “The awarding and execution of the onshore EPC contract is a significant step forward in developing the world-class Rovuma LNG project.”

Source:Kallanish Energy   www.kallanishenergy.com