May 14, 2019 / 3:15 PM / 12 days ago

Exxon's Mozambique LNG project plan gets approval

(Reuters) - Exxon Mobil Corp said on Tuesday that its development plan for Rovuma liquefied natural gas (LNG) project in Mozambique was approved by the country’s government, with the company’s final investment decision expected later this year.

The U.S. oil giant took charge of the East African LNG project’s onshore operations following a $2.8 billion deal with Italy’s Eni in 2017, adding to its slate of planned gas projects in Qatar, Papua New Guinea, Russia and the United States.

The Rovuma LNG project is expected to produce, liquefy and market natural gas from three reservoirs located in the Area 4 block offshore Mozambique.

Exxon said sales and purchase agreements have been submitted for approval for total capacities of two LNG plants, which are expected to produce more than 15 million tons of LNG per year.

Area 4 is operated by Mozambique Rovuma Venture S.p.A., a joint venture of Exxon Mobil, Eni and China National Petroleum Corp that holds a 70% stake in the block’s exploration and production concession contract.

The Rovuma LNG project is expected to provide up to 17,000 tons of liquefied petroleum gas per year in Mozambique from the Area 4 block, or about 50% of country’s LPG import, the company said in a statement.

Reporting by Shanti S Nair in Bengaluru; Editing by Arun Koyyur and Anil D'Silva

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