ExxonMobil Chief Executive Darren Woods has sought security guarantees from Mozambique’s President Daniel Chapo before moving forward with a proposed 30 billion dollar liquefied natural gas terminal in Cabo Delgado. The request highlights growing concerns over Islamist insurgency in the region, which has disrupted major energy projects and forced the displacement of hundreds of thousands of people, Reuters reported.
The planned LNG facility is part of the Rovuma project and is expected to produce about 18 million tonnes annually. Woods told Chapo that progress toward a final investment decision depends on assurances of safety and operational stability. The discussions also considered the potential resumption of TotalEnergies’ project nearby, which has been under force majeure since militants attacked the town of Palma in 2021, according to the Financial Times.
In a statement to the Financial Times, Chapo said the ExxonMobil project “will make a huge difference in the economy of Mozambique and, as a consequence, in the life of Mozambicans.” Exxon confirmed it is working closely with the government, TotalEnergies and other partners to ensure the conditions are in place for the terminal to proceed.
Analysts say Exxon’s request underlines how central security remains to Mozambique’s ambitions of becoming a major LNG exporter. If stability can be ensured, the project could significantly boost revenues and enhance the country’s role in global energy markets. But persistent insurgent activity and regulatory hurdles may still weigh on the final decision.
