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14 min ago 2 min read
Italian engineering firm Saipem and its SMDC joint venture partners are set to carry out preliminary engineering and procurement work on the planned 18.6 million tonnes per annum (mtpa) Rovuma liquefied natural gas (LNG) project in Mozambique, Southeast Africa.
Saipem, on behalf of the SMDC joint venture, has signed a letter of intent (LOI) with ExxonMobil Moçambique, representing the Area 4 partners behind Rovuma LNG, for the work. The initial value of the agreement is $32m.
The SMDC joint venture is formed of engineering firms Saipem, McDermott Energy Solutions, Daewoo Engineering & Construction, and China Petroleum Engineering & Construction Corporation.
The final engineering, procurement and construction (EPC) contract is subject to the Area 4 partners reaching a final investment decision (FID) and securing the necessary government and regulatory approvals for Rovuma LNG Phase 1.
The Area 4 partners expect to reach FID and receive the relevant approvals within 2026.
The LOI follows the award of the front-end engineering and design (FEED) contract to the SMDC joint venture for Rovuma LNG Phase 1 in August 2024.
Rovuma LNG involves the development of an onshore LNG plant on the Afungi Peninsula. The plant will comprise two LNG trains with 12 liquefaction modules and is expected to have a production capacity of around 18.6 mtpa.
The project forms part of Mozambique’s large . Together, projects already operating or under development represent more than 40 mtpa of LNG capacity.
This includes the Eni-led Coral South FLNG (operational), Coral North FLNG (expected in 2028), and the TotalEnergies-led Mozambique LNG project (targeting 2029).
More widely, in July, the European Commission opened an investigation into the between Saipem and Subsea7 to consider if it will significantly impact competition in some offshore engineering and construction service markets.
