Exxon, Shell in East African LNG race

ExxonMobil continues to hold out hope for its Rovuma LNG project, in Mozambique, while Shell has held talks with the Tanzanian government on another East African export plan.

Exxon’s senior vice president Neal Chapman highlighted the challenges around security in Mozambique. Chapman, speaking at the end of the first day of the Energy Intelligence Forum, said Rovuma LNG was a “very large, very competitive resource”. However, he also noted that the company had suspended progress.

The company “as lead operator of Rovuma LNG and TotalEnergies as operator of Area 1 are working with the government, we have to see how it plays out,” he said.

The French company said last week that it expected Mozambique LNG to reach first gas in 2026. Even this will depend on security improving.

In parallel with the security discussions in Mozambique, though, Exxon is competing in the process to partner with Qatar Petroleum (QP) at the North Field East (NFE) project. QP is likely to choose its preferred partners on NFE in 2022.

Both Rovuma LNG and NFE have a “very low cost of supply and are very competitive. We’re optimistic about growing in Qatar and also in Mozambique. We should remember that we will have first LNG from Mozambique in 2022”, from the Coral Sul floating LNG (FLNG) project.

Exxon is working on a number of projects around the world, but is becoming more concentrated on its core assets, Chapman said.

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Source: EnergyVoice

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