ExxonMobil has awarded engineering contracts for the Rovuma liquefied natural gas (LNG) Phase 1 project in Mozambique, pushing pre-development work forward ahead of a final investment decision (FID) expected in 2026.
Engineering and construction firm McDermott has received a letter of intent (LOI) from ExxonMobil, issued on behalf of the Area 4 partners, for limited engineering and procurement services on the project. McDermott will work alongside the SMDC joint venture — comprising Italy’s Saipem, South Korea’s Daewoo Engineering and Construction, and China Petroleum Engineering and Construction Corporation — to advance project definition and planning for the midstream development.
The SMDC joint venture will execute engineering for the inside battery limits, including the LNG modules, from McDermott’s offices in London and Gurgaon, with project management support from the joint venture team in Milan. McDermott previously completed front-end engineering design for Rovuma LNG and will now advance engineering activities for the liquefaction facilities.
Rovuma LNG is designed to produce 18.6 million tons of LNG per year from an onshore liquefaction facility featuring 12 modular trains, drawing on Mozambique’s offshore Area 4 gas reserves. Start-up is currently targeted for 2031, contingent on a positive FID in 2026.
The project represents Mozambique’s third major LNG development and its most ambitious in terms of production scale. Eni’s Coral South floating LNG project — also located in Area 4 — is already producing, while TotalEnergies’ Mozambique LNG project in the adjacent Area 1 block remains under development after security concerns in the Cabo Delgado region forced a suspension in 2021.
Together, the three projects form the backbone of Mozambique’s strategy to convert its substantial offshore gas reserves into export revenues and broader industrial development. If Rovuma LNG reaches FID and proceeds to production, Mozambique would rank among the world’s significant LNG exporters — a prospect with considerable implications for global gas supply and for energy investment flows into southern and east Africa.
For international energy companies and infrastructure investors tracking African upstream and midstream opportunities, the progression of Rovuma LNG through pre-FID engineering signals that ExxonMobil and its partners remain committed to the project despite the complex operating environment that has shadowed Mozambique’s LNG ambitions.
