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ExxonMobil Delays FID on Rovuma LNG, Moves Forward With Coral FLNG

ExxonMobil said a final investment decision (FID) for its Rovuma LNG project in Mozambique has been delayed, while its Coral FLNG development continues as planned.

The company outlined its plans for the LNG projects as it reduced 2020 capital spending by 30% and lowered cash operating expenses by 15% in response to low commodity prices resulting from oversupply and demand weakness from the COVID-19 pandemic. The company’s capital investments for 2020 are now expected to be about $23 billion, down from the previously announced $33 billion. The 15%  decrease in cash operating expenses is being driven by what it says are deliberate actions to increase efficiencies and reduce costs, and includes expected lower energy costs.

“After a thorough evaluation of the impacts of the pandemic and market conditions, we have worked closely with business partners to plan and execute capital adjustments that preserve long-term value, maximize cost efficiency, and put us in the strongest position when market conditions improve,” Darren Woods, ExxonMobil’s chairman and CEO, said.

The LNG projects, located in deepwater Area 4 some 50 km offshore Mozambique, are part of Mozambique Rovuma Venture (MRV), which is an incorporated joint venture between ExxonMobil, Eni and CNPC (70%), Galp (10%), KOGAS (10%), and Empresa Nacional de Hidrocarbonetos (10%)

FID on the Rovuma LNG project was expected later this year. The project, expected to start operations in 2025, consists of two gas liquefaction trains with total LNG nameplate capacity of 15.2 mtpa. ExxonMobil’s partners in the project include Eni and CNPC.

Construction of the 3.4-mtpa Coral floating LNG project began in 2018 and is progressing on schedule toward a planned 2022 startup.

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