McDermott Energy Solutions (UK) Limited, a subsidiary of McDermott and majority shareholder in the SMDC joint venture, has received a letter of intent from ExxonMobil Moçambique Limitada, acting on behalf of the Area 4 partners, to provide limited engineering and procurement services for the continuation of the Rovuma LNG Phase 1 midstream development in Mozambique.
The SMDC joint venture comprises McDermott, Saipem S.p.A., Daewoo Engineering & Construction Co. Ltd., and China Petroleum Engineering & Construction Corporation (CPECC). The award represents another important milestone for the consortium as the Area 4 partners continue advancing the project toward a final investment decision (FID), which is expected in 2026.
The initial scope of work will focus on engineering and procurement activities that support project definition, planning, and execution readiness. Leveraging extensive global expertise in engineering, procurement, and construction (EPC) of liquefied natural gas (LNG) facilities, the SMDC joint venture is positioned to support one of Africa’s most significant energy developments.
McDermott stated that the project builds upon its established LNG experience in Mozambique, including previous work on the Mozambique LNG development. The company believes its long-term presence in the country and disciplined project execution approach provide a strong foundation for delivering infrastructure that will contribute to Mozambique’s emergence as a major global LNG supplier.
The Rovuma LNG onshore development is planned to include 12 modular liquefaction trains with a combined production capacity of approximately 18.6 million tonnes of LNG per annum (MTPA). Commercial operations are currently anticipated to commence in 2031, making the project one of the largest LNG developments in the region and ExxonMobil’s single largest investment.
McDermott also highlighted that its successful completion of the front-end engineering design (FEED) for Rovuma LNG has positioned the company to support the project’s transition into the next phase of development. The engineering scope covering the inside battery limits (ISBL), including the liquefaction modules, will be executed from McDermott’s engineering centres in London, United Kingdom, and Gurgaon, India, while project management personnel will be integrated with the SMDC joint venture team based in Milan, Italy.
Beyond its engineering significance, the Rovuma LNG project is expected to have a substantial economic impact on Mozambique. The development is projected to generate approximately US$150 billion in revenues for the Government of Mozambique over its estimated 30-year operational life. According to a macroeconomic study released by Standard Bank, the project could contribute around US$11 billion annually to the country’s Gross Domestic Product (GDP) while supporting the creation of more than 150,000 jobs, reinforcing its role as a major catalyst for long-term economic growth and industrial development.
As preparations continue toward the anticipated final investment decision in 2026, the latest award underscores the confidence placed in the SMDC joint venture to deliver critical engineering expertise for one of the world’s most strategically important LNG projects.
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