Exxon and TotalEnergies Navigate Mozambique LNG Project Amid Insurgency Challenges

Exxon Mobil and TotalEnergies are negotiating to overcome security concerns in Mozambique before moving forward with LNG projects. The insurgency, linked to Islamic State militants in Cabo Delgado, has jeopardized energy plans. Exxon seeks safety guarantees from Mozambique's President before advancing the $30 billion LNG terminal.

Exxon Mobil CEO Darren Woods recently highlighted security concerns that threaten the viability of a $30 billion gas terminal project in Mozambique. The Financial Times reported that Woods is seeking security assurances from President Daniel Chapo before making critical project decisions.

The insurgency in Mozambique, spearheaded by Islamic State-linked militants, has disrupted energy projects since 2017, including those by Exxon and TotalEnergies. The violence in Cabo Delgado has raised the stakes for the companies, compelling TotalEnergies to declare force majeure in 2021, affecting various shared facilities.

Exxon plans to reach a final investment decision for its Rovuma LNG project by 2026. The company is working with its partners to establish safety conditions conducive to lifting the force majeure and advancing the project, which could significantly boost Mozambique's economy.

(With inputs from agencies.)