KEY POINTS
- ExxonMobil awarded McDermott engineering and procurement work for Rovuma LNG.
- The 12-train project is planned to produce 18.6 million tonnes of LNG annually.
- FID is expected later in 2026, with startup targeted for 2031.
ExxonMobil has taken another major step towards developing its long-awaited Rovuma LNG project in Mozambique after awarding McDermott Energy Solutions a letter of intent for limited engineering and procurement services.
The award marks further progress on the Phase 1 development of the massive onshore liquefied natural gas project, as ExxonMobil and its partners work towards a final investment decision (FID) expected later in 2026.
The contract was issued by ExxonMobil Moçambique on behalf of the Area 4 partners to the SMDC joint venture, which comprises McDermott, Saipem, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation (CPECC).
The latest engineering work is expected to support the continued definition, planning and preparation of the project as the partners move closer to the investment decision and eventual construction phase.
Under the letter of intent, McDermott will provide limited engineering and procurement services associated with the development of Rovuma LNG Phase 1.
The company previously carried out the project’s front-end engineering and design (FEED), giving it an established role in defining the technical requirements and execution framework for the development.
Engineering for the liquefaction modules and other inside battery limits (ISBL) facilities will be undertaken by McDermott teams based in London and Gurgaon, India.
Project management activities will be coordinated through the SMDC joint venture from Milan, Italy.
McDermott Chairman and Chief Executive Officer Michael McKelvy said the latest award builds on the company’s LNG experience in Mozambique and its focus on disciplined project execution.
Rovuma LNG planned as major 18.6-Mtpa development
Rovuma LNG Phase 1 is planned as a 12-train modular liquefaction facility with a projected production capacity of 18.6 million tonnes per annum (Mtpa).
The scale of the project makes it one of the most significant LNG developments in Mozambique and a potentially important addition to the global gas supply chain.
Production startup is currently targeted for 2031, subject to the project’s progression through the remaining development and investment stages.
ExxonMobil has described Rovuma LNG as its largest single investment, underlining the significance of the project to the company’s long-term LNG strategy.
The engineering and procurement award comes as ExxonMobil and its partners continue preparations for a final investment decision.
An FID would represent a critical milestone for Rovuma LNG, allowing the project to move from development and planning into the next stage of execution.
The latest award therefore provides an indication that work is continuing to advance ahead of the expected investment decision, although the project still faces the normal commercial, technical and development considerations associated with a project of its size.
Beyond its importance to ExxonMobil and the international LNG market, Rovuma LNG is expected to have significant economic implications for Mozambique.
McDermott said the development could generate substantial long-term economic benefits for the country while strengthening Mozambique’s position as a major global supplier of LNG.
The project is expected to contribute to the expansion of Mozambique’s energy industry and could support wider economic activity associated with engineering, construction, logistics and other services linked to the development.
The planned 2031 startup also positions Rovuma LNG as a potentially important future source of additional LNG supply as global demand for natural gas continues to evolve.
The latest engineering award reflects the continued involvement of the SMDC joint venture, bringing together McDermott, Saipem, Daewoo Engineering & Construction and CPECC.
With FEED already completed and additional engineering and procurement activities now being undertaken, the partners are continuing to refine the project’s requirements ahead of the anticipated FID.
If the project proceeds according to schedule, the planned 12-train development could become a major component of Mozambique’s LNG ambitions and strengthen the country’s role in the global natural gas market.
