XRG Expands with Rovuma Basin Entry in Mozambique
Deal News | Mar 28, 2025 | Zawya
XRG has finalized its acquisition of a 10 percent stake from Galp in Mozambique's Rovuma Basin Area 4 concession. This marks XRG's inaugural investment in the country and signifies its commitment to building a significant global gas portfolio. The Rovuma Basin is a substantial gas discovery, allowing XRG access to LNG projects with over 25 million tonnes of potential production capacity annually. These projects include operational and planned floating LNG developments, along with an onshore development project. Coral South FLNG and the anticipated Coral North FLNG projects, managed by Eni, promise a combined LNG production capacity of 7 mtpa. ExxonMobil leads the onshore Rovuma LNG project, projected to use advanced technology reducing carbon intensity, capable of producing 18 mtpa of LNG. XRG aims to enhance its energy provision capacity and promote sustainable economic growth through these initiatives, aligned with its focus on gas, chemicals, and low-carbon energy solutions in other regions like the US, Azerbaijan, and Egypt.
Sectors
- Energy
- Private Equity and Investment
Geography
- Mozambique – XRG has made a significant investment in Mozambique by acquiring a stake in the Rovuma Basin, indicating strategic geographic expansion.
- Global – XRG is expanding its global portfolio by adding Mozambique, thereby reinforcing its worldwide energy strategy.
Industry
- Energy – The article discusses XRG's investment in Mozambique's Rovuma Basin LNG projects, focusing on energy, specifically natural gas and LNG production.
- Private Equity and Investment – The acquisition of stakes in LNG projects by XRG reflects strategic investment activities analogous to those in private equity sectors.
Financials
- 10 percent stake – The article mentions XRG's acquisition of a 10 percent stake in Rovuma Basin's Area 4 concession from Galp.
- 25 million tonnes per annum – The potential combined LNG production capacity of the Rovuma Basin projects.
- 3.5 mtpa – The capacity of Coral South FLNG's LNG production.
- 18 mtpa – The anticipated LNG production capacity of the onshore Rovuma LNG Phase 1 Project.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| XRG | Acquiring Company | Company | XRG is expanding its global energy portfolio with strategic acquisitions, focusing on gas, chemicals, and low-carbon energy solutions. |
| Galp | Selling Company | Company | Galp is a company that sold its 10 percent interest in Mozambique's Rovuma Basin Area 4 to XRG. |
| Eni | Project Leader for Coral FLNG | Company | Eni manages the Coral South and planned Coral North Floating LNG projects in Mozambique. |
| ExxonMobil | Project Leader for Onshore Rovuma LNG | Company | ExxonMobil leads the onshore Rovuma LNG Phase 1 Project in Mozambique. |
| Government of Mozambique | Partner | Government | The government is a key partner in the development of Mozambique's Rovuma Basin resources. |