ExxonMobil Advances Mozambique's $20 Billion LNG Bet

ExxonMobil is moving forward with Mozambique's ambitious $20 billion liquefied natural gas (LNG) project in Area 4, awarding engineering contracts to McDermott and SMDC joint venture. The Rovuma LNG Phase 1 project aims to produce 18.6 million tons of LNG per year from an onshore facility featuring 12 modular trains.

The project's timeline indicates a final investment decision (FID) is expected in 2026, with start-up targeted for 2031 contingent on a positive FID. Mozambique's offshore gas reserves are substantial, and the Rovuma LNG project represents its third major LNG development and most ambitious in terms of production scale.

The Area 4 partners, including ExxonMobil, remain committed to the project despite security concerns in the region that have affected other projects. If Rovuma LNG proceeds to production, Mozambique would rank among significant LNG exporters, with considerable implications for global gas supply and energy investment flows into southern and east Africa.