KEY POINTS
- Exxon CEO sought security pledges from Mozambique’s president before greenlighting $30 billion LNG project.
- Islamist insurgency in Cabo Delgado has killed thousands and stalled energy investments since 2017.
- TotalEnergies may restart its nearby project if force majeure is lifted, adding pressure on Exxon’s timeline.
ExxonMobil Corp. Chief Executive Officer Darren Woods pressed Mozambique’s President Daniel Chapo last week for firm guarantees of security before moving ahead with a $30 billion liquefied natural gas project that could reshape the country’s economy, people familiar with the talks said.
At the heart of the discussion was the Islamist insurgency that has raged in the northern Cabo Delgado province since 2017, derailing multi-billion-dollar energy ventures and displacing hundreds of thousands of civilians. Exxonmobil is planning to build what would be Africa’s largest LNG export terminal in the province, but has held back on a final investment decision until conditions stabilize.
Insurgency Threat Looms Over Mega Gas Projects
Woods raised concerns that militants aligned with Islamic State remain capable of mounting attacks despite a regional military intervention, according to the people, who asked not to be named discussing private talks. The violence forced France’s TotalEnergies SE to halt construction of its own LNG project in 2021 after fighters overran the town of Palma, a logistics hub near the site.
Chapo, who took office earlier this year, told the Financial Times that Exxon’s investment could be transformative. “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,” he said.
TotalEnergies has signaled readiness to lift force majeure and resume work if security holds. Exxon, for its part, said it is working closely with Total, the government and partners “to ensure the right conditions are met” before making a final call on the development.
The stakes are high: Mozambique sits on vast offshore gas reserves, and if brought online, the projects could catapult the nation into the ranks of top LNG exporters. But without credible security assurances, investors fear billions could be sunk into infrastructure exposed to conflict.
