Seeking Alpha

Mozambique OKs Rovuma LNG development plan

|About: Exxon Mobil Corporation (XOM)|By: , SA News Editor

Exxon Mobil (XOM +0.2%) and Eni (E +0.1%) say the Mozambique government has authorized the development of the multibillion-dollar Rovuma liquefied natural gas project, slated to become one of two major LNG projects in Mozambique expected to begin major construction later this year.

During the production phase, the Rovuma LNG project is seen providing as much as 17M mt/year of liquefied petroleum gas in Mozambique from Area 4 resources, which currently comprises around half of the country's LPG imports.

XOM and Eni already have purchasing agreements for the LNG that would be produced annually by the first two LNG production trains.