FID on Mozambique’s Rovuma LNG Project Delayed Until 2021
Mozambique’s National Petroleum Institute (INP) has announced that the final investment decision (FID) for its planned $30 billion Rovuma liquefied natural gas (LNG) project will be taken by ExxonMobil in 2021.
The Rovuma LNG project’s FID was expected to take place in the first half of 2020, but in March ExxonMobil indicated capex cuts and moving forward was unlikely, due to the COVID-19 pandemic and the oil price collapse.
“The final investment decision of the Rovuma LNG project has been postponed to, in principle, next year,” said Carlos Zacarias, Chairman of INP.
The LNG project is expected to extract natural gas for liquefaction from a deep-water block offshore Mozambique containing more than 85 trillion cubic feet of natural gas.
ExxonMobil’s capital investment for 2020 is forecast to be about $23 billion, down from the $33 billion previously reported. The oil major’s reduced spending is accomplished through improved efficiencies, reduced market prices and a slower project pace.