Saipem's SMDC joint venture signed a letter of intent with ExxonMobil Moçambique, Limitada for the Rovuma LNG Phase 1 onshore project in Mozambique, Saipem said August 7, 2026. The agreement covers limited preliminary engineering and procurement activities and carries an initial value of $32 million.
ExxonMobil Moçambique signed on behalf of the Area 4 partners: ENH, CNPC, ENI, KOGAS and XRG. Saipem leads the SMDC group, which also includes McDermott Energy Solutions (UK) Ltd., Daewoo Engineering & Construction Co. Ltd. and China Petroleum Engineering & Construction Corporation.
Full EPC award still awaits FID
The final award of the full engineering, procurement and construction contract to the SMDC joint venture depends on a positive final investment decision by the Area 4 partners, along with government and regulatory approvals. Both are expected within 2026. The letter of intent follows a front-end engineering design contract that was awarded to the SMDC partnership in August 2024, and is meant to advance project definition and execution planning ahead of that decision.
Two trains on the Afungi Peninsula
The Rovuma LNG Phase 1 midstream development calls for an onshore natural gas liquefaction plant on the Afungi Peninsula, built around two LNG trains made up of 12 modular liquefaction modules. An LNG train is the processing line that cools natural gas into liquid form for shipping; modular construction lets contractors build sections off-site and assemble them at the plant. The project's expected overall production capacity is about 18.6 million tonnes of LNG per year.
Saipem operates in more than 50 countries and employs about 30,000 people. The company has five fabrication yards and an offshore fleet of 17 owned construction vessels and 12 drilling rigs, nine of which it owns.
Saipem said the letter of intent adds to its position in the liquefied natural gas sector.
