ADNOC's XRG Expands Global Presence With Strategic Acquisition In Mozambique’s Rovuma Basin LNG Projects

XRG has successfully finalised its acquisition of Galp's 10 percent stake in the Area 4 concession located in Mozambique's Rovuma Basin. This move, first announced in May 2024, marks XRG's initial venture into the country. The acquisition aligns with XRG's strategy to develop a comprehensive gas portfolio that addresses global energy demands while promoting sustainable practices.

The Rovuma Basin is one of the largest gas discoveries in recent years, offering significant opportunities for XRG. The basin provides access to pioneering LNG projects with a combined production capacity exceeding 25 million tonnes per annum (mtpa). This acquisition includes interests in Coral South Floating LNG (FLNG), Coral North FLNG, and Rovuma LNG's onshore development projects.

Khaled Salmeen, XRG's Chief Operating Officer, expressed enthusiasm about the development. "We are proud and excited to be part of the responsible development of Mozambique's world-class Rovuma Basin. Together with the Government of Mozambique and our partners, we are looking forward to sharing our expertise, adding value and accelerating these developments towards their full potential LNG capacity. This milestone investment will enhance XRG's ability to provide energy solutions to meet rising demand and help unlock sustainable economic growth."

Coral South FLNG is notable as the first project of its kind deployed in African waters. It can produce 3.5 mtpa of LNG using advanced technology focused on energy efficiency. Coral North FLNG is also set to produce an additional 3.5 mtpa once its final investment decision is made. Both projects are spearheaded by Eni.

The onshore Rovuma LNG Phase 1 Project is led by ExxonMobil and is expected to complete its front-end engineering design phase by 2025. This project utilises an innovative modular electric drive design aimed at reducing carbon emissions for its planned 18 mtpa LNG output.

XRG's acquisition strengthens its international portfolio across various energy sectors. The company focuses on sustainable economic growth and long-term value creation through three main pillars: gas, chemicals, and low-carbon energy solutions.

Gas and LNG remain central to XRG's long-term strategy. Recent strategic acquisitions have been made not only in Mozambique but also in the United States, Azerbaijan, and Egypt.

This strategic investment enhances XRG’s ability to meet rising global energy demands while supporting sustainable economic growth initiatives worldwide.

With inputs from WAM