ExxonMobil has canceled a scheduled public appearance by several executives who were set to reaffirm the company’s commitment to the Rovuma LNG project in Mozambique. This event was supposed to take place alongside Mozambique’s President, Daniel Chapo, but has now been postponed due to escalating security concerns in the region. The cancellation highlights the ongoing challenges facing the $30 billion liquefied natural gas venture, which remains on hold pending a final investment decision.
The Rovuma LNG project, which aims to become the largest LNG export hub in Africa, has yet to secure the necessary investments. The primary factor contributing to this uncertainty is the unstable security situation in the Cabo Delgado province, where both Rovuma and TotalEnergies’ Mozambique LNG projects are located. Despite the lifting of force majeure by TotalEnergies earlier this month, concerns about Islamist insurgency in the region continue to overshadow progress.
According to a report from the Financial Times, the rising insecurity is likely the reason for Exxon’s cancellation of the joint briefing. The publication cites multiple calls for delays to both LNG projects as armed groups remain active in the area. A senior adviser at Oxfam, Andrew Bogrand, expressed skepticism about the viability of discussing these projects under such circumstances. He stated, “The security situation has got much worse. People are talking about attacks happening on a nightly basis on highways around the [Rovuma] project. I just don’t understand how you can have a genuine conversation on whether or not this project moves forward in this context.”
The Islamist insurgency in Mozambique has been a significant barrier to the country’s energy ambitions for several years. Previously, the Rwandan army collaborated with forces from the Southern African Development Community to address the insurgent threat. However, those security efforts were hampered as funding for operations ran low, leading to the withdrawal of these forces.
The situation in northern Mozambique has reportedly deteriorated, with recent data from conflict monitoring organization Acled indicating that there were 22 violent deaths in the week leading up to October 26. Additionally, the UN Refugee Agency reported that approximately 100,000 individuals have fled their homes due to the escalating violence.
As Exxon reassesses its position on the Rovuma LNG project, the future of Mozambique’s energy landscape remains uncertain. The combination of financial investment hesitancy and security threats poses significant challenges for the realization of these ambitious energy projects, which are crucial for the country’s economic development.
The unfolding situation in Cabo Delgado will likely continue to draw attention from international stakeholders, as the implications of these developments extend beyond Mozambique’s borders. The need for a comprehensive security strategy is evident, as the region grapples with the dual pressures of insurgency and economic ambition.
