Saipem has signed a letter of intent worth an initial $32 million to begin engineering and procurement work on the Rovuma LNG Phase 1 onshore project in Mozambique, keeping its joint venture in line for the full construction contract once the project clears a final investment decision.
The agreement
Saipem, based in Milan, signed the letter of intent on August 7, 2026, with ExxonMobil Moçambique, Limitada, acting on behalf of the Area 4 partners: ENH, CNPC, ENI, KOGAS, and XRG. Saipem leads the SMDC joint venture, which also includes McDermott Energy Solutions (UK) Ltd., Daewoo Engineering & Construction Co. Ltd., and China Petroleum Engineering & Construction Corporation. The letter covers limited preliminary engineering and procurement activities meant to advance the project's definition and execution planning.
Award of the full engineering, procurement and construction contract to SMDC still depends on a positive final investment decision by the Area 4 partners, along with government and regulatory approvals, both expected within 2026. SMDC's work on the project traces back to a front-end engineering design contract it won in August 2024.
The plant
Rovuma LNG Phase 1 is an onshore natural gas liquefaction plant planned for the Afungi Peninsula in Mozambique. The design calls for two LNG trains built from 12 modular liquefaction modules, with combined production capacity of about 18.6 million tonnes of LNG a year.
Saipem, listed on the Milan Stock Exchange, works in more than 50 countries and operates five fabrication yards and an offshore fleet of 17 owned construction vessels.
