The development of Africa’s largest liquefied natural gas (LNG) export hub in Mozambique has suffered a major setback after U.S. oil giant ExxonMobil reportedly suspended its active interest in advancing the long-delayed project. The move raises new uncertainty for one of the continent’s most ambitious energy undertakings, which has been plagued by security and financing challenges.
As reported by Financial Times and Bloomberg, ExxonMobil has slowed progress on its share of the Rovuma LNG project, estimated at over $30 billion, amid heightened concerns about rising costs, global market volatility, and persistent instability in Mozambique’s Cabo Delgado province. The project, which Exxon leads alongside Italy’s Eni and China’s CNPC, was expected to transform Mozambique into a top global LNG exporter.
A senior Mozambican energy official told Reuters that ExxonMobil’s hesitation “reflects shifting investment priorities in a complex geopolitical and economic environment,” though the government remains in talks to revive momentum. The official added that Mozambique is still committed to developing its gas resources, including through parallel projects with TotalEnergies and other investors.
Industry analysts quoted by Upstream Online note that Exxon’s pullback could delay Mozambique’s plans to rival Qatar and Australia in LNG exports. However, they added that renewed interest from Asian and Middle Eastern investors might eventually fill the funding gap once security conditions improve.
