Exxon Reassesses Mozambican LNG Project with Ambitious Output Goal

Mozambique [East Africa]:  Exxon Mobil is reportedly exploring the potential for resuming a liquefied natural gas project in Mozambique, which was stalled partly due to an Islamic State-linked insurgency. The energy giant has requested expressions of interest to design and build an LNG plant with a capacity of up to 18 million tons per year - an increase from their original plans of 15.2 million tons per year.

Exxon Mobil Corporation has announced plans to restart its LNG export venture in Mozambique's Cabo Delgado province. The projects were temporarily put on hold two years ago following a violent attack on the town of Palma, but a combination of local and foreign troops have since made significant advancements in containing the insurgency which has left over 4,600 people dead. With TotalEnergies SE being the first to consider resumption last month, Exxon has now followed suit with plans for their own return.

Mozambique's potential investments in Liquified Natural Gas (LNG) projects exceed its annual output, and the government is counting on these export revenues to service its debt of approximately R16.5 billion. In November, a consortium of Exxon and Eni SpA of Italy exported Mozambique's first LNG production from a floating vessel offshore. The plant has an annual capacity of 3.4 million tons, providing the country with a much-needed economic lifeline.

A major onshore project is set to expand, involving an estimated 1.5 million tons. Companies have until the end of the month to express their interest in taking part in the project.