Bucket C, project economics, is the focus of this story. Saipem has signed a letter of intent for limited preliminary engineering and procurement work on ExxonMobil led Rovuma LNG Phase 1 in Mozambique, following a similar update from its SMDC joint venture partner McDermott.
The initial work has a value of 32 million dollars. A full engineering, procurement and construction award to SMDC, which includes Saipem, McDermott, Daewoo Engineering and Construction, and China Petroleum Engineering and Construction Corporation, depends on a final investment decision and government approvals expected during 2026.
Rovuma LNG is estimated to cost about 30 billion dollars and would build an onshore liquefaction plant on the Afungi Peninsula. The plan calls for two LNG trains, 12 modular liquefaction units, and capacity of about 18.6 million tonnes of LNG a year.
ExxonMobil Mozambique is the delegated operator for construction and operations, while Mozambique Rovuma Venture operates the Area 4 concession with a 70 percent interest alongside KOGAS, ENH, and ADNOC XRG. Area 4 is estimated to hold about 85 trillion cubic feet of gas and already includes Coral Sul FLNG, with Rovuma LNG expected to start up in 2031 if it proceeds.