Area 4 co-venture participants have secured offtake commitments from affiliated buyer entities of the partners for the Rovuma LNG project.
Image: Area 4 co-venture secures offtake commitments for Rovuma LNG Project. Photo: Courtesy of rawpixel on Unsplash.
The Area 4 co-venture participants include ExxonMobil, Eni, the China National Petroleum Corporation, Empresa Nacional de Hidrocarbonetos, Kogas and Galp.
The venture partners claim this as an important step to move towards the final investment decision on the first phase of the Rovuma LNG project in 2019.
The offtake commitments are commitments are subject to the conclusion of fully-termed agreements, which will be finalized in the next weeks, and the approval of the Government of Mozambique.
ExxonMobil Gas and Power Marketing Company president Peter Clarke said: “The Rovuma LNG marketing team has worked at an accelerated pace to reach this important milestone, a tremendous achievement made possible by the strength of the Area 4 co-venture parties and the support of the Government of Mozambique.”
The Rovuma LNG project is expected to produce, liquefy and market natural gas from the Mamba fields located in the Area 4 block offshore the Rovuma Basin in Mozambique.
For the first phase of the Rovuma LNG project, Mozambique Rovuma Venture has submitted the development plan to the Government of Mozambique in July 2018.
ExxonMobil will carry out construction and operation of natural gas liquefaction and related facilities on behalf of the Area 4 joint venture, while Eni will take up the construction and operation of the upstream facilities.
The development plan for the first phase of the Rovuma LNG project defines the proposed design and construction of two liquefied natural gas trains, with each capable of producing each 7.6 million tons of LNG per year.
Mozambique Rovuma Venture is currently engaged in productive discussions with the Mozambican Government on development plan details.
The proposed Rovuma LNG project is expected to generate government revenues. Besides, the project will support long-term economic growth in Mozambique by developing the local workforce, building the capabilities and demand for suppliers, and assisting with community development efforts.
Mozambique Rovuma Venture is a joint venture owned by ExxonMobil, Eni and CNPC that owns a 70% stake in the Area 4 exploration and production concession contract (EPCC). Empresa Nacional de Hidrocarbonetos, Galp and Kogas, hold a 10% stake interest each.