Exxon LNG decision on ice as Mozambique faces TotalEnergies request, source says

Exxon and Total’s LNG projects in Mozambique share onshore facilities Mozambique government has not given date when it will approve Total’s project terms request Exxon has said it sees final investment decision on project in early 2026 By Sheila Dang HOUSTON, Oct 30 (Reuters) - Exxon Mobil (XOM.N) is unable to make a final investment decision on a $30 billion liquefied natural gas project in Mozambique called Rovuma LNG until TotalEnergies (TTEF.PA) resumes work on a related project nearby, according to a source familiar with the matter. Exxon is affected by TotalEnergies’ project because they include shared facilities. The French firm confirmed on Saturday that it had lifted a four-year force majeure on its $20 billion Mozambique LNG project. MOZAMBIQUE, TOTALENERGIES DISCUSSING RESTART OF PROJECT In a letter to the Mozambique government, TotalEnergies said its costs had risen by $4.5 billion and requested that the country grant an extension of the development and production period by 10 years. Mozambique is pushing back against that request, deeming the $4.5 billion amount too high, a source close to the government told Reuters. Spokespeople for the government did not respond to a request for comment. TotalEnergies’ CEO told investors on Thursday that its letter to the government had been misinterpreted, that the company will be able to quickly restart the project, and that the $4.5 billion cost increase is included in its $20.5 billion budget. Mozambique’s President Daniel Chapo visited the U.S. this week and held talks at Exxon’s headquarters in Spring, Texas on Wednesday, but a scheduled press conference was cancelled. In a press statement on Wednesday, he announced that the country had signed two memorandums of understanding with Exxon to evaluate domestic gas projects and build a training center to develop the Mozambican workforce. TotalEnergies did not immediately respond to a request for comment, but pointed to September 29 comments from CEO Patrick Pouyanne in which he said Total coordinated closely with Exxon and both firms believed operations could restart quickly. EXXON HOPES TO MAKE ROVUMA LNG DECISION EARLY IN 2026 Exxon has said it hopes to take a final investment decision on Rovuma LNG in early 2026, with a first cargo by 2030. Work on Mozambique LNG in the Area 1 offshore block has been halted for four years following an Islamist-linked insurgent attack. The ongoing delays have highlighted the challenges Mozambique still faces to become a major LNG exporter and develop its economy. Exxon and Italian energy firm Eni (ENI.MI) each hold 25% stakes in the southern African country’s Area 4 offshore block, which is estimated to hold more than 85 trillion cubic feet of natural gas. Exxon is leading the construction and operation of the Rovuma LNG onshore liquefaction facilities, while Eni is leading the floating production units in the deepwater block dubbed Coral North and South. Completion of the Eni, Exxon and TotalEnergies projects could make Mozambique a top 10 global gas producer by 2040, consulting company Deloitte said in a report last year.