(Bloomberg) – ExxonMobil lifted a force majeure on its Rovuma liquefied natural gas project in Mozambique as security concerns subside, a key step toward sanctioning the development and committing construction funds.
The force majeure was put in place after Islamic State-affiliated militants carried out an attack near its operations in northeastern Mozambique in 2021. Ending the force majeure will allow work to resume and is a crucial step toward Exxon making a final investment decision on the project, which is expected next year.
TotalEnergies SE, which is building a separate $20 billion LNG plant nearby, ended its own suspension last month.
See also: ExxonMobil says Mozambique LNG project to advance ‘quickly’ after force majeure lifted
“We have lifted force majeure for the Rovuma LNG project,” an Exxon spokesman said. “We are working with our partners and the government of Mozambique to ensure the safety of our people and facilities, as we look to develop a world-class LNG project that can help drive economic growth.”
The Exxon and TotalEnergies projects are expected to be online by the early 2030s — assuming no further delays — and will enable Mozambique to ship gas around the world for decades. They also promise to transform the country’s economy, one of the world’s poorest, into an energy-export powerhouse.
Mozambican President Daniel Chapo is keen to realize those promises and has worked in recent months with Rwandan troops to help secure the Cabo Delgado region. He called the area “relatively stable” in July and urged companies to resume work even if threats remain.
“If we’re waiting for Cabo Delgado to be a heaven, we won’t lift force majeure,” he said at the time.
Exxon used the delay to refine Rovuma’s design, envisioning it will produce as much as 18 million tons of gas annually, up from the original 15.2 million tons. Partners include China National Petroleum Corp. (CNPC), ADNOC, Seoul’s Korea Gas Corp. and Italian energy company Eni SpA.
Exxon will be in a position to move fast once the force majeure ends, Chief Executive Officer Darren Woods said earlier this month.
“We took the time to focus really on the project development and refine the design and come up with what we thought was the best concept,” he said in Sao Paulo at the COP30 climate summit. “I think we’ll be able to advance fairly quickly after force majeure is lifted.”
Exxon is looking to roughly double its LNG supply portfolio by 2030, compared with a decade earlier, as it bets on a 20% increase in natural-gas demand by 2050. The Mozambique project is expected to become operational early in the next decade, when U.S. and Qatari expansions are set to saturate the market.
