Saipem S.p.A., leading the SMDC joint venture with McDermott Energy Solutions (UK) Ltd., Daewoo Engineering & Construction Co. Ltd., and China Petroleum Engineering & Construction Corporation, has signed a Letter of Intent (LOI) with ExxonMobil Moçambique, Limitada, on behalf of the Area 4 partners, for the Rovuma LNG Phase 1 midstream development in Mozambique.
The LOI covers preliminary engineering and procurement activities valued at approximately US$32 million, supporting further project definition and execution planning. The final EPC contract award remains subject to a positive Final Investment Decision (FID) by the Area 4 partners and the required government and regulatory approvals, expected during 2026.
This development follows the FEED contract awarded to the SMDC partnership in August 2024 and represents another important step toward the advancement of the Rovuma LNG project.
The onshore development at the Afungi Peninsula is planned to comprise two LNG trains with 12 modular liquefaction modules, with an expected production capacity of approximately 18.6 million tonnes of LNG per year.
Through the SMDC joint venture, Saipem will leverage its extensive experience in large-scale LNG and complex energy infrastructure projects to support the engineering and procurement activities required to advance the project toward execution.
The LOI further strengthens Saipem’s position in the LNG sector and highlights the continued development of Mozambique’s major gas infrastructure projects.
Source: Saipem