ENI and ExxonMobil start gas extraction in Mozambique at the end of 2022

17 May 2018

The consortium led by Italy’s ENI and North American ExxonMobil groups is expected to begin the extraction and liquefaction of natural gas in the Rovuma Basin Area 4 block in the fourth quarter of 2022, the Mozambican Minister of Mineral Resources and Energy said on Wednesday in Maputo.

Minister Max Tonela, responding to questions from the country’s parliament about the ongoing actions to launch natural gas operations off the coast of the province of Cabo Delgado, northern Mozambique, said that in March the first steel plate for the construction of the anchoring system of the floating platform for the liquefaction of natural gas in the South Coral field of that block had been cut.

Tonela said completion of the [platform] construction is expected by the end of 2021 and is scheduled to be in Mozambican waters by the end of the first quarter of 2022, “ready to extract the gas, transform it into a liquid state and export it to the whole world.”

The consortium will invest US$8 billion and, according to the minister, should generate direct profits of US$47.7 billion over the project’s 25-year life – providing the Mozambican state with US$24.5 billion from Tax on Oil Production, Corporate Tax (IRPC) and production sharing.

The Mozambican minister of Mineral Resources and Energy also noted that the project led by US group Anadarko Petroleum expected to start construction of an onshore liquefaction unit in the Afungi peninsula, at the end of 2019.

“The Anadarko group and Rovuma Area 1 partners are finalising purchase agreements for nine million ton/year of liquefied natural gas, which will allow us to announce the final investment decision in the first quarter of 2019,” Tonela said.

The project also has a life expectancy of 25 years and provides for total investment of around US$30 billion, capable of generating revenue in the order of US$53 billion for the Mozambican state, the minister said. (macauhub)