Maputo, 26 Aug (AIM) – Mozambique’s Confederation of Business Associations (CTA) has revealed that the US oil and gas company ExxonMobil has earmarked approximately four billion US dollars for local content in its Rovuma LNG project, in the northern province of Cabo Delgado.
ExxonMobil is leading the construction and operation of all future natural gas liquefaction and related facilities for the Area 4 deep water block off the Cabo Delgado coast. The project is operated by a joint venture owned by ExxonMobil, the Italian energy company ENI, and CNPC of China.
The project is expected to deliver approximately 150 billion dollars in revenues to Mozambican State over its 30-year operating life. The project includes the development of significant offshore gas resources in Area 4 and an onshore LNG facility with a planned production capacity of 18.6 million tonnes of LNG per year.
According to CTA chairperson, Álvaro Massingue, this multi-billion-dollar allocation creates unprecedented supply chain opportunities for domestic enterprises, which will be channeled through the CTA Local Content Bureau. However, he warned that Mozambican companies must proactively upgrade their capacities to meet ExxonMobil’s technical, financial, and quality standards.
“The funds are already reserved. What our business community must do now is stay attentive to the tender opportunities posted at our Local Content Bureau within the CTA. There are strict criteria to meet, and domestic firms must prepare themselves to qualify”, Massingue said, during a meeting in Maputo with a World Food Programme (WFP) delegation.
As evidence of this momentum, Massingue highlighted the recent award of a 250 million dollar pipe procurement contract by ExxonMobil as a clear indicator that the multinational is preparing to transition into the project’s implementation phase.
“We saw today that they awarded a 250 million dollar contract just for purchasing pipes. This means they are getting ready to begin, which is a strong signal for Mozambique”, he said.
He added that while ExxonMobil has not yet officially confirmed the final investment decision, ongoing preparatory investments demonstrate positive momentum, citing early-works contracts totaling 1.1 billion dollars already awarded for the Cabo Delgado gas development.
The meeting with the WFP delegation, which included officers specializing in resilience, nutrition, and school feeding, focused on building private-sector partnerships to combat malnutrition and food insecurity.
Massingue added that the CTA is fully prepared to host provincial delegations and participate in the upcoming Maputo International Trade Fair (FACIM).
(AIM)
MR/Zt/Am/
