ExxonMobil awards McDermott LOI for Rovuma LNG Phase 1 engineering
- McDermott’s SMDC joint venture received a letter of intent for limited engineering and procurement services for Rovuma LNG Phase 1 midstream development.
- Area 4 partners are progressing toward a final investment decision expected in 2026.
- Phase 1 is planned as 12 modular liquefaction modules producing 18.6 million tonnes per year, with start-up anticipated in 2031.
- A Standard Bank macroeconomic study estimates about US$150 billion to Mozambique over 30 years, ~US$11 billion annually to GDP and more than 150,000 jobs.
Scope and partners
McDermott Energy Solutions (UK) Limited, as majority shareholder in the SMDC joint venture with Saipem S.p.A., Daewoo Engineering & Construction Co. Ltd. and China Petroleum Engineering & Construction Corporation (CPECC), has been awarded by ExxonMobil Moçambique Limitada, on behalf of the Area 4 partners, a letter of intent that includes limited engineering and procurement services for continuation of the Rovuma LNG Phase 1 midstream development.
Execution and prior work
The LOI follows McDermott’s completion of front-end engineering design (FEED) for Rovuma LNG. Engineering of the inside battery limits (ISBL), including the liquefaction modules, will be executed from McDermott’s London and Gurgaon offices, with project management seconded to the JV team based in Milan.
Schedule, capacity and economic impact
The onshore development is expected to include 12 modular liquefaction modules designed to produce 18.6 million tonnes of LNG per year, with start-up anticipated in 2031. ExxonMobil describes Rovuma LNG as its largest single investment. A Standard Bank macroeconomic study cited in the announcement estimates approximately US$150 billion in revenues to the Government of Mozambique over the project’s 30-year life, potential addition of around US$11 billion annually to Mozambique’s GDP and employment of more than 150,000 people.
Source: McDermott