McDermott Energy Solutions (UK) has been awarded a letter of intent by ExxonMobil Moçambique Limitada covering limited engineering and procurement services for the next stage of the Rovuma LNG Phase 1 midstream development in Mozambique. The award was made on behalf of the Area 4 partners and supports continued project definition and planning as those partners move toward a final investment decision expected in 2026.
A joint venture with Mozambique history
McDermott Energy Solutions (UK) is a subsidiary of McDermott and the majority shareholder in the SMDC joint venture, which also includes Saipem S.p.A., Daewoo Engineering & Construction Co. Ltd. and China Petroleum Engineering & Construction Corporation (CPECC). Under the letter of intent, McDermott will handle engineering of the inside battery limits, including the liquefaction modules, from its London and Gurgaon offices, while project management is seconded to the joint venture team based in Milan.
Michael McKelvy, chief executive officer and chair of the board for McDermott, said the work builds on the company's LNG experience in Mozambique, including its experience on the separate Mozambique LNG project. Rob Shaul, McDermott's senior vice president of low carbon solutions, said the award reflects the company's relationship with ExxonMobil and follows McDermott's completion of front-end engineering design, or FEED, work on Rovuma LNG.
The project's scale
| Metric | Figure |
|---|---|
| Liquefaction modules | 12 |
| Capacity | 18.6 million tonnes of LNG per year |
| Start-up | anticipated 2031 |
| Final investment decision | expected 2026 |
The onshore Rovuma LNG development is expected to include 12 modular liquefaction modules built to produce 18.6 million tonnes of LNG a year, with start-up anticipated in 2031. ExxonMobil has called Rovuma LNG, which it leads in Area 4, its largest single investment.
What it means for Mozambique
A macroeconomic study released by Standard Bank found the project could deliver about $150 billion in revenue to the Government of Mozambique over its 30-year life, add roughly $11 billion a year to the country's GDP, and employ more than 150,000 people.
