ExxonMobil-led Mozambique plan moves forward with $11Bln EPC

Tuesday, 15 October 2019
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JGC Corp along with TechnipFMC and Fluor have won lucrative contract

LNG Journal editor

ExxonMobil said it planned to invest more than $500 million in the initial construction phase of its liquefied natural gas project in Mozambique as part of the Area 4 resources development with its partners including Italian energy company Eni and China National Petroleum Corp.

“The Area 4 partners will advance midstream and upstream area project activities of more than $500M as initial investments,” said Exxon’s head of power and gas marketing, Peter Clarke at a ceremony in Mozambique’s capital Maputo to celebrate the southeast African nation’s LNG advances.

Consortium

At the same time, Japanese energy engineering firm JGC Corp. said it was awarded an engineering, procurement and construction contract along with EPC consortium partners, the Franco-US company TechnipFMC and Fluor Corp. of the US.

JGC said the EPC contract award in Mozambique was worth a total of around $11.2 billion for all the companies involved.

“LNG production at the complex is expected to commence in 2025,” said JGC.

“Mozambique Rovuma Venture selected the JGC, Fluor and TechnipFMC based on the consortium’s demonstrated capabilities in health and safety management, competitive financial strength, technical design, execution planning, the contract price and schedule,” said JGC.

“The JFT consortium was established to execute the project, leveraging JGC and TechnipFMC’s extensive experience of LNG projects worldwide, as well as Fluor’s expertise accumulated from its outstanding track record of mega-sized projects performed globally,” added the Japanese company.

ExxonMobil's Clarke said the EPC contract covers the construction of two natural gas production Trains with a total capacity of 15.2 million tonnes per annum as well as associated onshore facilities.

Nello Uccelletti, President of the Onshore-Offshore division at TechnipFMC, said he was delighted by the EPC contract.

“We are extremely honored to have been awarded by MRV this new prestigious LNG project along with our long-time partners, JGC and Fluor. This award confirms the market recognition of TechnipFMC’s expertise and track record in gas monetization and, in particular, in the LNG industry,” stated Uccelletti.

Clarke explained that his announcement in Maputo fell short of a final investment decision by ExxonMobil and partners, though this was scheduled to be finalized in 2020.

The LNG project celebrations were ahead of Mozambique’s presidential elections set to take place on October 15 and the progress of LNG investments is expected to boost support for President Filipe Nyusi.

Exxon’s Rovuma Basin stake, jointly held with Italian firm Eni, will produce LNG from three feed-gas reservoirs located in the Area 4 block offshore Mozambique’s northern coast.

ExxonMobil is the lead company for the Mamba gas fields and LNG project development and costs are estimated at around $30 billion. Production is scheduled for start-up in 2024.

Area 4's consortium is formed by Mozambique Rovuma Ventures, comprising ExxonMobil with 25 percent, Eni with 25 percent and China’s CNPC, also known as PetroChina, with 20 percent.

The remaining 30 percent of shares in that licence are held in parcels of 10 percent by South Korean utility and energy company Korea Gas Corp., Galp Energia of Portugal and Mozambique’s ENH.

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