Mozambique: Rovuma LNG Project with perspective of revenues up to 150 billion USD for the State

The Rovuma LNG project, led by ExxonMobil in Mozambique, in the Rovuma Basin, Cabo Delgado province, is increasingly close to the final investment decision (FID), scheduled for the second half of this year, with the prospect of generating up to 150 billion US dollars in revenue for the Mozambican State over 30 years. The announcement was made by the General Manager of ExxonMobil Mozambique, Arne Gibbs, during the 12th Mozambique Mining and Energy Conference and Exhibition, an event taking place in Maputo since Wednesday. The American oil company confirmed the submission of the new project development plan to the Mozambican Government in April of this year.

“I would like to say that it will increase Government revenues by 60 percent during the life of this project,” Gibbs stated. He guaranteed that the new Rovuma LNG concept will allow for greater production of liquefied natural gas (LNG) with significant scale gains. According to the official, the project could channel up to 150 billion dollars to the Mozambican State throughout the initiative’s useful life.

ExxonMobil considers Rovuma LNG to be the largest project in the history of the African continent and maintains that the revision of the technical concept represents a decisive change, following two years of engineering that culminated in the adopted modular model that will allow more LNG to be produced with optimized costs. “The secret to the success of this concept is very simple: economies of scale. If you can do a larger size, more volume of LNG, for the same price, you always win,” Gibbs declared.

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He confirmed that the company maintains the schedule to reach the final investment decision later this year. “We maintain our commitment to making the final investment decision during the second half of this year,” he stated. In addition to long-term tax revenues, ExxonMobil sought to deconstruct the perception that the project’s economic benefits will only emerge after the start of gas production.

According to Gibbs, there will be financial inflows for the State as early as the construction phase through taxes, fees, and the participation of the Mozambican commercial banking sector. “There are several revenue points that will begin even during the construction phase,” he explained.

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