Eni is planning to exit the Rovuma LNG project in Mozambique, the mega onshore liquefaction development that has faced prolonged delays, in order to redirect its strategic focus toward floating liquefaction solutions. The move marks a significant shift in one of the most closely watched LNG project portfolios on the African continent.
The Rovuma LNG project, a large-scale onshore development anchored to gas resources in the Rovuma Basin off northern Mozambique, has been stalled for years due to a combination of security challenges in Cabo Delgado province and financing complexities. Eni's decision to exit signals a strategic recalibration away from capital-intensive, long-cycle onshore LNG infrastructure toward more flexible, faster-to-market floating LNG technology.
Floating liquefaction — which involves processing and liquefying natural gas aboard a vessel moored at or near the production field — allows operators to monetise offshore gas reserves without the need for onshore processing plants or the associated land-based logistics and security footprint. For Eni, this pivot aligns with its existing operational experience in floating LNG, including its Coral Sul FLNG vessel, which is already producing LNG offshore Mozambique from the Area 4 block under the Coral South project.
The exit from Rovuma LNG would affect Eni's position in a project that also involves other international and national stakeholders. The precise terms of the divestment, including any prospective buyer or the timeline for completion of the exit, were not disclosed in available reporting. It is also not confirmed at this stage whether Eni's departure would trigger a broader reassessment of the project by its remaining partners or affect the Government of Mozambique's plans to advance onshore LNG development alongside the TotalEnergies-led Mozambique LNG project, which remains suspended.
Mozambique holds some of the largest natural gas reserves in sub-Saharan Africa, and the country's LNG ambitions remain central to its long-term fiscal planning and export revenue strategy. However, the persistent insecurity in Cabo Delgado has fundamentally altered the risk calculus for operators with large onshore infrastructure commitments in the north of the country. Eni's move to floating liquefaction represents one operator's response to that evolving risk environment — favouring offshore infrastructure that is less exposed to land-based security threats and can be redeployed if conditions change.
The decision is likely to prompt further debate within the industry about the viability of Mozambique's onshore LNG megaprojects and whether floating alternatives can serve as a credible substitute or complement to the original development plans.