ExxonMobil is likely to delay its LNG project in Mozambique due to the coronavirus and a slump in gas price, Reuters reported citing six sources familiar with the project. Exxon owns a 35.7% interest in the Rovuma LNG project in Mozambique’s Cabo Delgado province. Other stakeholders include Eni (35.7%), CNPC (28.6%), KOGAS (10%), ENH (10%), and Galp Energia (10%).
Exxon has committed $500 million in the project’s initial investment. However, it is unlikely to reach an FID before the end of 2020, the sources said. The pandemic has affected its Chinese and Korean financers.
Mozambique also implements a two-week quarantine for people visiting the country. This puts a further disruption in the project as key personnel cannot reach the project site. Moreover, LNG price slumped to a record low of $2.7/MMBtu last month, well below an average price of $7/MMBtu needed by the project to be profitable.
