ExxonMobil Moçambique Limitada has awarded McDermott Energy Solutions (UK) Limited a letter of intent covering limited engineering and procurement services for the Rovuma LNG Phase 1 midstream development, McDermott said Aug. 6. The award, made on behalf of the Area 4 partners, supports continued project definition and planning as the group works toward a final investment decision expected in 2026.
McDermott holds a majority stake in the SMDC joint venture, which also includes Saipem, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation (CPECC). The joint venture previously completed front-end engineering design (FEED) work on the project.
The onshore 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. Rovuma LNG is ExxonMobil's largest single investment.
McDermott will handle engineering of the inside battery limits, the term for a plant's core process units, including the liquefaction modules, from its London and Gurgaon offices, while project management will run out of the joint venture team in Milan.
McDermott chief executive Michael McKelvy said the award reflects the company's "disciplined approach to execution" and builds on its LNG work in Mozambique. Rob Shaul, McDermott's senior vice president of low carbon solutions, said the company is "well positioned to advance the project into its next phase" after completing FEED work.
A macroeconomic study from Standard Bank found Rovuma LNG, led by ExxonMobil in Area 4, could deliver about $150 billion in revenue to the Government of Mozambique over the project's 30-year life, add roughly $11 billion a year to the country's GDP, and employ more than 150,000 people.
