US oil giant ExxonMobil will be taking a final investment decision (FID) on its long-delayed $30bn Rovuma LNG project in northern Mozambique by the first quarter of 2026, following steady progress in restoring security across Cabo Delgado province and the gradual resumption of activity at neighbouring sites.
The company’s chief executive, Darren Woods, confirmed on 31 October that the project is now “in a very good position,” noting that conditions around the Afungi Peninsula have “improved considerably.”
As a result, ExxonMobil has resumed key preparatory work and is engaging with government and local stakeholders to finalise regulatory and commercial terms ahead of the decision.
The renewed optimism follows a similar move by TotalEnergies, which in late October began lifting the force majeure declared in 2021 on its adjacent $20.5bn Mozambique LNG development after insurgent attacks forced a halt in operations.
Both ventures are located in the offshore Rovuma Basin and share planned onshore liquefaction and export infrastructure at Afungi — a factor that ExxonMobil says will enhance efficiency and reduce costs once operations restart.
Woods met with Mozambican President Daniel Chapo in New York in late September to discuss progress on security and the government’s commitment to safeguarding investments.
According to Mozambique’s Ministry of Natural Resources, proven reserves in the Rovuma Basin now exceed 85 Tcf of gas, which could make the country one of Africa’s largest future LNG exporters.
ExxonMobil’s Rovuma LNG project
The Rovuma project is led by ExxonMobil in partnership with Eni and China National Petroleum Corp. (CNPC) will involve constructing two liquefaction trains with a combined capacity of around 15.2m t/yr.
The development is expected to generate thousands of local jobs and significantly boost Mozambique’s export earnings once production begins.
Industry observers view the project as a cornerstone of ExxonMobil’s long-term LNG growth strategy.
Global gas demand rose 2.7% in 2024, or about 115 billion cbm, driven by a rebound in Asia and Europe’s push to replace Russian pipeline gas with LNG.
The International Energy Agency forecasts an additional 1.3% increase in 2025, supporting new supply investments in Africa and beyond.
The project’s success is expected to anchor Mozambique’s emergence as a global LNG hub, complementing existing offshore developments operated by Eni.
ExxonMobil has said the final decision will depend on security, fiscal clarity, and global market conditions, but early signs point to a full commercial restart in 2026.
Exxon’s recent new moves
Outside the Mozambique LNG project, ExxonMobil has renewed focus on its wider African ambitions.
After years of exit, the Texas-based company has recently returned to a few African countries where it had previous interests including then-conflict-ridden Libya and Gabon.
Exxon initially left its exploration works in Gabon in 2015 due to non-commerciality.
In yet another move to deepen its foothold on the continent, the company has just signed a new gas exploration deal with Egypt’s Ministry of Petroleum for a new concession area west of the Zohr field in the Mediterranean region.