Saipem and Jan De Nul have taken a new step toward executing the Phase 1 subsea infrastructure for Rovuma LNG in Mozambique after signing a Letter of Intent with ExxonMobil Moçambique.
The agreement opens a phase of preliminary work ahead of a possible award of the engineering, procurement, construction and installation (EPCI) contract. The final decision will depend on the Area 4 partners’ Final Investment Decision (FID) and on government and regulatory approvals expected in 2026.
Saipem and Jan De Nul prepare the Rovuma LNG development
Specifically, the Letter of Intent covers initial engineering, procurement and technical services activities. This work is valued at approximately €11 million and will help advance the technical definition and execution planning.
ExxonMobil Moçambique signed the agreement on behalf of Mozambique Rovuma Venture (MRV), which represents the Area 4 partners: ENH, CNPC, Eni, KOGAS and XRG.
For now, the LOI does not constitute the final award of the EPCI contract. That phase will be subject to a favorable FID and to meeting the authorizations required to move forward with the development.
A subsea network will connect 18 wells to the LNG plant
In addition, the planned technical scope places the consortium in an essential part of Rovuma LNG’s production chain. The upstream infrastructure will transport gas from Area 4’s offshore resources to the onshore liquefaction plant.
The development includes 18 subsea wells connected through a network of pipelines and subsea manifolds. The system will gather and transport the gas produced offshore before sending it to the LNG facilities located onshore.
In this way, the subsea infrastructure will serve as the link between the offshore gas fields and Rovuma LNG’s liquefaction plant in Palma.
Installing these systems requires the capability to work in both shallow and deep waters. The potential scope includes export pipelines, umbilicals, infield flowlines and other infrastructure associated with subsea production.
The EPCI contract still depends on the FID
Meanwhile, the FID remains the decisive point for turning the preliminary work into a full EPCI contract. The Area 4 partners must approve the investment before the final award to the Saipem–Jan De Nul consortium can be finalized.
The Rovuma LNG project is designed to reach a production capacity of around 18.6 million tonnes of LNG per year. Therefore, the subsea infrastructure is a key component for supplying gas to the planned onshore facilities in Mozambique.
The preliminary phase enables engineering and planning to be brought forward while the investment decision process progresses. This can facilitate the transition to construction once the required authorizations are obtained.
Offshore experience for ExxonMobil’s project in Mozambique
In addition, Saipem brings experience in engineering and construction of offshore energy projects, including the installation of subsea systems and pipelines. The Italian company has a specialized fleet for offshore construction and drilling operations.
Jan De Nul complements these capabilities with experience in installing and protecting pipelines and subsea cable systems. The company has also previously carried out offshore construction work in Mozambique.
Likewise, the combination of both companies makes it possible to address different components of the subsea development under an integrated engineering, procurement, construction and installation scheme.
With the Letter of Intent now signed, Rovuma LNG enters a phase of technical preparation for its upstream infrastructure. The next key milestone will be the Area 4 partners’ FID, which will determine whether the consortium moves toward full execution of the subsea contract.
Source: Saipem
Photo: Shutterstock
