Construction of Africa’s biggest LNG export hub faces setback as oil giants, Exxon halts interest.
Plans for Africa’s biggest $30-billion liquefied natural gas (LNG) export hub in Mozambique have been thrown into uncertainty after Exxon canceled a scheduled appearance where its executives were expected to reaffirm the company’s commitment to the Rovuma LNG project alongside President Daniel Chapo.
The decision signals renewed hesitation around one of Africa’s most ambitious energy undertakings.
According to a report by Oil Price, the Rovuma LNG project estimated at $30 billion, is set to become the continent’s largest LNG export facility once completed.
However, the project has yet to reach a final investment decision due to persistent insecurity in the Cabo Delgado province, the epicenter of an Islamist insurgency that has destabilized northern Mozambique for nearly a decade.
Report has it that ExxonMobil cannot make a final investment decision on the $30 billion liquefied natural gas project until TotalEnergies resumes work on a related facility nearby, due to their shared infrastructure.
The French energy giant TotalEnergies confirmed recently that it has lifted a four-year force majeure on its $20 billion Mozambique LNG project, marking a cautious step toward revival.
The company had halted operations in 2021 following a surge of terrorist attacks in Cabo Delgado, where more than 6,000 people have been killed since 2017.
Although the force majeure was lifted this year, the project’s future remains uncertain as violence in the region continues to escalate.
The United Nations estimates that more than 100,000 people were displaced this year, with nearly one million still in need of humanitarian aid.
Cabo Delgado’s insurgency, which began in 2017, entered its eighth year in October and shows little sign of abating. Despite multiple military deployments including foreign troops and private contractors, the conflict has hampered Mozambique’s broader energy and oil sector ambitions.
Source: Africabusinessinsider