ExxonMobil issues letter of intent to McDermott consortium for Rovuma LNG project in Mozambique

ExxonMobil Moçambique has awarded a letter of intent to the SMDC joint venture, led by McDermott Energy Solutions, for preliminary engineering and procurement services on the Rovuma LNG Phase 1 development in Mozambique. The deal advances project planning toward a target 2026 final investment decision.

ExxonMobil Moçambique Limitada, operating on behalf of its Area 4 venture partners, has awarded a letter of intent to the SMDC joint venture for preliminary engineering and procurement services on the Rovuma LNG Phase 1 midstream project in Mozambique, according to official corporate disclosures. The SMDC consortium-comprising McDermott Energy Solutions (UK) Limited as majority shareholder alongside Saipem S.p.A., Daewoo Engineering & Construction Co. Ltd., and China Petroleum Engineering & Construction Corporation-will perform initial work to support project definition ahead of a target final investment decision in 2026. Engineering for inside battery limits, including 12 modular liquefaction units, will be executed across McDermott’s facilities in London and Gurgaon, with project management coordinated out of Milan. ExxonMobil Moçambique Limitada is the upstream operator overseeing Area 4 development on behalf of international energy partners. McDermott Energy Solutions is a global engineering, procurement, and construction services firm specializing in complex offshore and subsea energy infrastructure.

This development marks a significant operational milestone for Mozambique's natural gas sector, advancing a megaproject designed to produce 18.6 million tonnes of LNG per year upon its projected 2031 commissioning. Representing ExxonMobil’s largest single capital investment globally, the Rovuma LNG project is poised to serve as a pivotal economic catalyst for the Southeast African nation. According to macroeconomic projections by Standard Bank, the 30-year lifecycle of the development is anticipated to yield approximately $150 billion in direct government revenues, expand national GDP by nearly $11 billion annually, and generate over 150,000 direct and indirect employment opportunities across regional supply chains.

The progress toward a final investment decision highlights a broader revitalization of East Africa’s offshore energy corridor as global natural gas buyers seek long-term supply diversification. Deploying a modular liquefaction design for the midstream facilities enables reduced onsite construction complexity and improved capital efficiency, setting a technical precedent for large-scale LNG developments in emerging frontiers. Furthermore, the collaboration among American, European, Korean, and Chinese engineering firms within the SMDC joint venture illustrates the international capital and technical coordination required to de-risk high-capital energy infrastructure projects under tight execution constraints.

For global energy markets and infrastructure contractors, the award signals growing commercial momentum in sub-Saharan African natural gas development. The pre-construction commitments position consortium partners to secure substantial follow-on engineering, procurement, and construction contracts once final investment approval is granted in 2026. Equipment vendors, logistics providers, and regional subcontractors stand to benefit from massive supply chain demand as procurement scales up. For institutional investors and commodity traders, the progress on Rovuma LNG reinforces expectations of expanding global LNG supply capacity in the early 2030s, positioning Mozambique as a major export hub to satisfy long-term Asian and European energy demand.