McDermott Energy Solutions (UK), a majority shareholder in the SMDC joint venture, has received a letter of intent from ExxonMobil Mozambique, on behalf of the Area 4 partners, covering limited engineering and procurement services for the Rovuma LNG Phase 1 midstream development in Mozambique.
The work is intended to support continued project definition and planning as the Area 4 partners progress toward a final investment decision, which is expected in 2026.
The SMDC joint venture comprises McDermott, Saipem, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation (CPECC).
Engineering of the inside battery limits (ISBL), including the liquefaction modules, will be carried out by McDermott from its offices in London and Gurgaon, while project management personnel will be seconded to the joint venture team in Milan.
The onshore Rovuma LNG development is expected to include 12 modular liquefaction modules with a production capacity of 18.6 million tonnes of LNG per year. Start-up is anticipated in 2031.
"Our work on Rovuma LNG builds on McDermott's established LNG expertise in Mozambique and our disciplined approach to execution. Our experience on Mozambique LNG, combined with our long-term commitment to the country, positions us to deliver critical infrastructure that supports Mozambique's emergence as a major global LNG supplier,” said Michael McKelvy, Chief Executive Officer and Chair of the Board for McDermott.
"This award reflects the strength of our long-standing relationship with ExxonMobil and our ability to deliver complex LNG developments. Having successfully executed front-end engineering design (FEED) for Rovuma LNG, we are well positioned to advance the project into its next phase,” added Rob Shaul, McDermott's Senior Vice President of Low Carbon Solutions.