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Exxon to expand Mozambique LNG project to cut costs

Published 07/12/2018, 12:28 PM
© Reuters.  Exxon to expand Mozambique LNG project to cut costs
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  • Exxon Mobil (XOM +0.4%) plans to expand its Rovuma liquefied natural gas project in Mozambique by 50% to cut production costs as the partners prepare to book the plant's supply and formally tap lenders in September, the company tells Reuters.
  • Under new development plans submitted to the government, XOM says its first two liquefaction trains should each produce 7.6M metric tons/year, with a start date in 2024.
  • XOM's decision to upsize its first two trains means it will need to renegotiate a resource-sharing deal Eni struck in 2015 with rival LNG project developer Anadarko Petroleum (APC), which owns the neighboring Area 1 license, industry sources say.
  • The two rival Mozambique projects are ramping up to take final investment decisions in 2019 and both are seeking buyers and loans to underpin hefty construction costs.
  • Now read: Exxon Mobil Raises Dividend 6.5%. Now What?


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