Exxon Mobil plans to invest more than $500 million in the initial construction phase of its liquefied natural gas (LNG) project in Mozambique.
The U.S. oil company’s $30 billion Rovuma LNG project, jointly operated with Italy’s Eni, has a capacity of more than 15 million tonnes a year (mtpa) and is set to pump much-needed cash into the country’s ailing economy.
“The Area 4 partners will advance midstream and upstream area project activities of more than $500 million as initial investments,” Exxon head of power and gas marketing, Peter Clarke told a ceremony in Mozambique’s capital Maputo on Tuesday.
Construction of onshore facilities has been awarded to a consortium led by Japan’s JGC, U.K firm TechnipFMC and U.S. company, Fluor Corp.
“These EPC (engineering, procurement and construction) contracts cover the construction of two natural gas production trains with a total capacity of 15.2 million tons per annum, as well as associated onshore facilities,” Clarke adds.
Final investment decisions, a term used by the oil industry to mean the commercial and regulatory aspects of a project are finalised, will be made in 2020.