ExxonMobil Moçambique has signed a $32 million letter of intent with a Saipem-led joint venture for initial engineering work on the Rovuma LNG Phase 1 project, advancing development ahead of a final investment decision anticipated in 2026.
A joint venture led by Saipem S.p.A. has secured an initial $32 million letter of intent to perform early-stage engineering and procurement planning for the Rovuma LNG Phase 1 onshore liquefaction facility in Mozambique. The agreement, executed with ExxonMobil Moçambique on behalf of the Area 4 consortium, allows preliminary technical work to proceed ahead of a full engineering, procurement, and construction commitment. Commercial execution of the main turnkey contract remains contingent on the project partners securing regulatory clearances and reaching a final investment decision, which is targeted for 2026.
Saipem S.p.A. is an Italian multinational energy services company that provides engineering, drilling, and construction services for major offshore and onshore infrastructure projects globally. The firm leads the SMDC consortium alongside international partners McDermott Energy Solutions (UK) Ltd., Daewoo Engineering & Construction Co. Ltd., and China Petroleum Engineering & Construction Corporation.
The early work authorization marks a critical step forward for East Africa's gas monetization ambitions, positioning the region as an emerging supplier to global liquefied natural gas markets. Developing large-scale liquefaction capabilities in Mozambique strengthens energy supply chain diversification for international importers, particularly in Asia and Europe, while signaling renewed commercial momentum for mega-energy infrastructure investments in Sub-Saharan Africa.
The project centered on the Afungi Peninsula encompasses the construction of an onshore processing facility designed with two main liquefied natural gas trains utilizing 12 modular liquefaction units. The infrastructure is engineered to achieve a combined export capacity of roughly 18.6 million tonnes per year, providing substantial opportunities for specialized engineering providers, marine logistics operators, and global equipment manufacturers supporting large-scale energy projects.
For energy developers and project financiers, the step-by-step progress demonstrates a structured approach to risk management prior to committing multi-billion-dollar capital investments. By advancing baseline design and supply chain preparation ahead of a formal investment decision, the project partners aim to compress execution timelines and optimize cost structures once final approvals are granted.
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