Saipem (SMDC) signs LOI for Rovuma LNG Phase 1 onshore midstream
- Saipem leads the SMDC joint venture with McDermott, Daewoo E&C and China Petroleum Engineering & Construction for the LOI.
- The Letter of Intent covers preliminary engineering and procurement activities with an initial value of USD 32 million.
- Final award of the EPC contract to SMDC is conditional on a positive FID by Area 4 partners and government/regulatory approvals expected within 2026.
- Rovuma LNG onshore Phase 1 comprises two LNG trains made of 12 modular liquefaction modules, with ~18.6 million tonnes per year capacity.
Deal and parties
Saipem, leading the SMDC joint venture with McDermott Energy Solutions (UK) Ltd., Daewoo Engineering & Construction Co. Ltd. and China Petroleum Engineering & Construction Corporation, signed a Letter of Intent with ExxonMobil Moçambique on behalf of the Area 4 partners (ENH, CNPC, ENI, KOGAS and XRG) for Rovuma LNG Phase 1 midstream development.
Scope and value
The LOI covers limited preliminary engineering and procurement activities to advance project definition and execution planning, with an initial value of USD 32 million.
Conditions and timing
The final award of the Engineering, Procurement and Construction contract to the SMDC joint venture is subject to a positive Final Investment Decision by the Area 4 partners and receipt of necessary government and regulatory approvals, which are expected within 2026.
Project description and context
The onshore development on the Afungi Peninsula is planned to include two LNG trains composed of 12 modular liquefaction modules and an expected overall production capacity of approximately 18.6 million tonnes per year. The LOI follows a front-end engineering design contract previously awarded to the SMDC partnership in August 2024, with Saipem to support engineering and procurement activities for the project definition and preparation.
Source: Saipem