Italian energy giant Eni on Friday said it and its partners in the Rovuma liquefied natural gas offshore project in Mozambique have obtained offtake commitments from affiliated buyers, a key milestone enabling co-participants to rapidly move toward a final investment decision in 2019 on the project's first phase.
“These commitments are an important step forward for the Rovuma LNG project and provide a solid foundation for securing project financing," Massimo Mantovani, Eni chief gas and LNG marketing and power officer said.
"This achievement highlights the strength of our partnership and commitment to developing Mozambique’s natural resources,” Mantovani added.
Area 4 participants are US major ExxonMobil, Eni, the China National Petroleum Corporation, Mozambique's state oil company Empresa Nacional de Hidrocarbonetos, South Korean public national gas company Kogas and Portuguese group Galp, according to Eni's statement.
The commitments are subject to the conclusion of fully-termed agreements - which will be finalised and initialed in the next weeks - and the approval of the government of Mozambique, the statement said.
“The Rovuma LNG marketing team has worked at an accelerated pace to reach this important milestone, a tremendous achievement made possible by the strength of the Area 4 co-venture parties and the support of the Government of Mozambique,” said Peter Clarke, president of ExxonMobil Gas and Power Marketing Company.
Eni will lead the construction and operation of the upstream facilities for the Rovuma LNG project which will produce, liquefy and market natural gas from the Mamba fields located in the Area 4 block offshore the Rovuma Basin in Mozambique.
ExxonMobil will lead construction and operation of natural gas liquefaction and related facilities on behalf of the Area 4 joint venture, according to the Eni statement.
The development plan for the first phase of the Rovuma LNG project specifies the proposed design and construction of two liquefied natural gas trains, which will each produce 7.6 million tons of LNG per year. Mozambique Rovuma Venture is currently holding productive discussions with the Mozambican Government on details of the development plan which it submitted in July.
In addition to generating government revenues, the proposed Rovuma LNG project will support long-term economic growth in Mozambique by training the local workforce, building the capabilities of and demand for suppliers, and assisting with community development efforts, Eni said.
Mozambique Rovuma Venture, an incorporated joint venture owned by ExxonMobil, Eni and CNPC, holds a 70 percent participation interest in the Area 4 exploration and production concession contract, alongside Empresa Nacional de Hidrocarbonetos, Galp and Kogas, each of which holds a 10 percent interest.
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