ExxonMobil and its co-venture partners have secured development plan approval from the Government of Mozambique for the Rovuma LNG project offshore Mozambique.

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Image: The Rovuma LNG phase 1 project will comprise two liquefied natural gas trains. Photo courtesy of Kasey Houston/Freeimages.com.

The Rovuma LNG project aims to produce, liquefy and market natural gas from three reservoirs located in the Area 4 block. Two of the three reservoirs straddle the boundary with neighboring Area 1.

Located offshore of the Cabo Delgado province of northern Mozambique, the Area 4 concession is operated by Mozambique Rovuma Venture, which is a joint venture (JV) between ExxonMobil, Eni and CNPC. The JV owns a 70% interest in the Area 4 concession.

The remaining 30% is held by Galp, KOGAS and Empresa Nacional de Hidrocarbonetos (ENH).

ExxonMobil Upstream Oil & Gas Company president Liam Mallon said: “The development plan approval marks another significant step toward a final investment decision later this year.

“We will continue to work with the government to maximize the long-term benefits this project will bring to the people of Mozambique.”

ExxonMobil and project partners aim to achieve LNG production start-up in 2024, with the final investment decision on the project anticipated in 2019.

The first phase of the Rovuma LNG project will comprise two liquefied natural gas trains which have a planned combined annual capacity over 15 million tons.

Mozambique Minister of Mineral Resources and Energy Ernesto Elias Max Tonela said: “This is the third development plan approved in this five-year period to enable the sustainable development of the huge natural gas reserves discovered in the Rovuma basin and represents the government’s commitment to ensure the implementation of projects that will drive the development of Mozambique.”

ExxonMobil said that the partners have submitted sales and purchase agreements for 100% of the LNG capacity for trains 1 and 2, to the government of Mozambique for approval.

Eni chief development, operations & technology officer Alessandro Puliti said: “The expected production from the Area 4 block will generate substantial benefits for Mozambique and the Area 4 partners.”

The Rovuma LNG project is expected to produce up to 17,000 tons of liquefied petroleum gas (LPG) per year in Mozambique from Area 4 resources.