ExxonMobil Moçambique, representing the Area 4 partners, has issued a letter of intent (LOI) to the SMDC joint venture for limited engineering and procurement services for the Rovuma LNG Phase 1 project in Mozambique.
The SMDC joint venture consists of McDermott, Saipem, Daewoo Engineering & Construction, and China Petroleum Engineering & Construction Corp. (CPECC). This agreement aids in project definition and planning as the partners work toward a final investment decision (FID), which is anticipated later this year. McDermott previously executed the front-end engineering and design (FEED) for the development.
The Rovuma LNG project is designed as a 12-train modular liquefaction facility with an overall production capacity of 18.6 million tonnes per annum (Mtpa). Representing ExxonMobil’s largest single investment, the project has a targeted startup date of 2031.
“Our work on Rovuma LNG builds on McDermott’s established LNG expertise in Mozambique and our disciplined approach to execution,” said Michael McKelvy, chairman and CEO of McDermott.
Engineering services for the liquefaction modules and inside battery limits (ISBL) facilities will be conducted from McDermott’s offices in London and Gurgaon. Project management will be coordinated through the SMDC joint venture in Milan. The development is projected to deliver lasting economic advantages to Mozambique and bolster its role as a key global LNG producer.
