McDermott Energy Solutions (UK) Limited, a subsidiary of McDermott and the majority shareholder in the SMDC joint venture alongside Saipem S.p.A., Daewoo Engineering & Construction Co. Ltd., and China Petroleum Engineering & Construction Corporation (CPECC), has received a Letter of Intent (LOI) from ExxonMobil Moçambique Limitada, acting on behalf of the Area 4 partners. The award covers limited engineering and procurement services for the continued development of the Rovuma LNG Phase 1 midstream project.
This scope of work will support ongoing project definition and planning as the Area 4 partners move toward a Final Investment Decision (FID), which is expected in 2026. The SMDC joint venture combines extensive international expertise in the engineering, procurement, and construction (EPC) of large-scale LNG facilities.
“Our work on Rovuma LNG builds on McDermott’s established LNG expertise in Mozambique and our disciplined approach to execution,” said Michael McKelvy, Chief Executive Officer and Chair of the Board for McDermott. “Our experience on Mozambique LNG, combined with our long-term commitment to the country, positions us to deliver critical infrastructure that supports Mozambique’s emergence as a major global LNG supplier.”
The onshore Rovuma LNG development is planned to include 12 modular liquefaction trains with a total production capacity of 18.6 million tonnes of LNG per annum (MTPA), with commercial operations expected to commence in 2031. The project represents ExxonMobil’s largest single investment globally.
“This award reflects the strength of our long-standing relationship with ExxonMobil and our ability to deliver complex LNG developments,” added Rob Shaul, McDermott’s Senior Vice President of Low Carbon Solutions. “Having successfully executed front-end engineering design (FEED) for Rovuma LNG, we are well positioned to advance the project into its next phase.”
Engineering activities for the Inside Battery Limits (ISBL), including the liquefaction modules, will be carried out by McDermott’s teams in London and Gurgaon, while project management personnel will be seconded to the SMDC joint venture team based in Milan.
Beyond its technical significance, Rovuma LNG is expected to deliver substantial economic benefits to Mozambique. Over its projected 30-year lifespan, the project is estimated to generate approximately US$150 billion in revenues for the Government of Mozambique.
Source: McDermott