ExxonMobil Seeks Security Assurances For $30B Mozambique LNG Project From President Chapo: Report

ExxonMobil (XOM) CEO Darren Woods reportedly met with Mozambique President Daniel Chapo on the sidelines of the United Nations General Assembly to seek security assurances for a proposed $30 billion gas terminal in the African nation.

According to a Financial Times report, Woods spoke with Chapo about an armed insurgency in Mozambique’s north-eastern Cabo Delgado region, where Exxon is planning to build the largest liquefied natural gas facility in Africa.

The oil major and its Italian partner, Eni, are jointly developing the Rovuma LNG project, with Exxon leading the construction and operation of the onshore liquefaction facilities and related infrastructure.

However, in 2021, an attack by Islamic State-linked militants at a nearby town forced Exxon to delay taking a final investment decision on the giant project. France’s TotalEnergies, which operates the Area 1 Mozambique LNG plant, declared force majeure following the attacks. Exxon also took a hit as it was jointly developing common facilities with the Paris-based firm, such as an LNG jetty and offloading facility.

Woods and Chapo also reportedly discussed plans by TotalEnergies to resume work on the Area 1 LNG plant. Total is reportedly looking to restart the project as the energy firm sees improvement in the security situation in the region. Last year, Exxon delayed its final investment decision on the Rovuma LNG project from late 2025 to 2026.

“We strongly believe that the ExxonMobil project, if implemented, will make a huge difference in the economy of Mozambique and, as a consequence, in the life of Mozambicans,” Chapo told FT.

Retail sentiment on Stocktwits about Exxon stock was in the ‘bullish’ territory at the time of writing.

Mozambique currently holds one of the world's largest natural gas deposits. Exxon and Total are banking on a growing LNG demand globally, alongside the facilities’ unique location between Asia and Africa.

However, the facilities have faced challenges with receiving funding, as some banks refused to lend for fossil fuel development projects. The FT report stated that forces from Mozambique and Rwanda have sought to bolster security near the Afungi Peninsula, where the projects are located. However, there has been an increase in violence across the vast Cabo Delgado region.

Exxon stock has gained 5.5% this year.

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