McDermott Energy Solutions (UK) has received a letter of intent from ExxonMobil Moçambique for limited engineering and procurement services on the Rovuma LNG Phase 1 development in Mozambique.
The award was made on behalf of the Area 4 partners as the project continues definition and planning ahead of a final investment decision expected in 2026. The current cost estimate for Rovuma LNG is around $30 billion, although the final cost has not been fixed because FID has not yet been reached.
McDermott Energy Solutions (UK) is a subsidiary of McDermott and the majority shareholder in the SMDC joint venture with Saipem, Daewoo Engineering & Construction Co. Ltd., and China Petroleum Engineering & Construction Corporation (CPECC).
Michael McKelvy, Chief Executive Officer and Chair of the Board of McDermott, said the company’s work on Rovuma LNG follows its previous LNG activities in Mozambique and its experience on Mozambique LNG.
Mozambique Rovuma Venture (MRV), comprising ExxonMobil, Eni, and China National Petroleum Corporation (CNPC), operates the Area 4 exploration and production concession with a 70% interest.
The remaining 30% is held equally by KOGAS, Empresa Nacional de Hidrocarbonetos (ENH), and ADNOC. ADNOC acquired Galp’s 10% interest in May 2024.
Area 4 in the Rovuma Basin contains approximately 85 trillion cubic feet of natural gas resources. The block includes the operational Coral Sul FLNG development, the planned Coral North FLNG project, and the ExxonMobil-led Rovuma LNG onshore liquefaction project.
While MRV operates the Area 4 concession, ExxonMobil Moçambique is the delegated operator responsible for construction and operation of the Rovuma LNG facilities.
The onshore project is expected to comprise 12 modular liquefaction modules with capacity to produce 18.6 million tonnes of LNG per year. Start-up is anticipated in 2031.
Rob Shaul, Senior Vice President of Low Carbon Solutions at McDermott, said the company had already completed front-end engineering design for Rovuma LNG and is moving into the project’s next phase.
Engineering for the inside battery limits, including the liquefaction modules, will be carried out from McDermott offices in London and Gurgaon. Project management personnel will be seconded to the joint venture team in Milan.
Rovuma LNG is expected to generate approximately $150 billion in revenue for the Government of Mozambique over the project’s 30-year life. A macroeconomic study released by Standard Bank estimated that the project could add around $11 billion annually to Mozambique’s gross domestic product and employ more than 150,000 people.
