Rovuma LNG in Mozambique took another step towards his final investment decision (FID) following the signing of a letter of intent between Saipem y ExxonMobil to begin preliminary engineering and acquisition work.
The initiative, whose investment is estimated at around $30 billion, includes a large onshore liquefied natural gas plant on the peninsula of Fungi the development will have a planned capacity of approximately 18.6 million tons of LNG per year.
Rovuma LNG is progressing with Saipem’s preliminary work
Specifically, Saipem will participate in this stage through the joint venture SMDC, also made up of McDermott, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation (CPECC).
The letter of intent includes limited engineering and procurement activities with an initial value of $32 million; this work will allow for the continued definition of technical aspects of the project and prepare for its future execution.
However, the final award of the engineering, procurement and construction contract (EPC) still depends on a final positive investment decision, and the corresponding government and regulatory approvals will also need to be completed.
Saipem’s move comes after McDermott announced its involvement in this new phase; both companies are part of the consortium that received the front-end engineering and design contract in August 2024.(FEED) of Rovuma LNG.
ExxonMobil is preparing a plant with a capacity of 18.6 million tons per year.
On the other hand, Rovuma LNG plans to develop an onshore natural gas liquefaction plant in Afungi; the design includes two trains of LNG comprised of 12 liquefaction modules.
The facility would have a combined capacity of approximately 18.6 million tons per year. If the investment is completed under the planned conditions, this infrastructure will allow for the large-scale processing of gas resources from the Rovuma basin.
ExxonMobil Mozambique is acting as the delegated operator for the construction and operation of the Rovuma LNG facility. According to the project plan, commissioning is scheduled for 2031.
Area 4 concentrates large gas resources in Mozambique
The project is also part of the development of the Area 4 block of the Rovuma Basin, where natural gas resources are estimated at approximately 85 trillion cubic feet.
Mozambique Rovuma Venture (MRV), comprised of ExxonMobil, Eni, and China National Petroleum Corporation (CNPC), holds a 70% stake in the concession. KOGAS, Empresa Nacional de Hidrocarbonetos (ENH), and ADNOC’s XRG each hold a 10% stake.
Area 4 also includes Coral Sul FLNG, currently in operation, and the Coral North FLNG project. Rovuma LNG represents the onshore component led by ExxonMobil in the development of these gas resources.
The IDF will mark the next step for Rovuma LNG
Now, attention is focused on the partners’ final investment decision and the necessary authorizations to move forward with the EPC contract.
A positive FID would allow the SMDC consortium to move from preparatory activities to a much broader implementation phase. For Saipem, McDermott, and their partners, the letter of intent thus establishes the technical and contractual foundations for preparing for that eventual transition.
This progress also places Rovuma LNG back among the major LNG projects seeking to enter a new phase of development in Africa. With an estimated investment of $30 billion and a planned capacity of 18.6 million tons per year, the decision regarding its implementation will be crucial for the future development of Area 4.
Source And Photo: Offshore Energy