Construction Review




$1.1bn Rovuma LNG Phase 1: ExxonMobil Awards Major Contracts for Mozambique Construction Push

Home » Energy » LNG » $1.1bn Rovuma LNG Phase 1: ExxonMobil Awards Major Contracts for Mozambique Construction Push
Rovuma LNG Phase 1

Rovuma LNG Phase 1 has entered a crucial procurement stage after ExxonMobil awarded approximately $1.1 billion in pre-investment contracts. The awards target long-lead equipment needed for offshore gas production and the planned LNG development in Cabo Delgado.

The contracts mark one of the clearest signs of renewed construction momentum around Mozambique’s long-delayed Rovuma LNG project. They also allow suppliers to begin manufacturing specialized equipment before the final investment decision (FID).

Rovuma LNG Phase 1 Contracts Accelerate Construction Preparations

The latest awards cover subsea production systems, large-bore production valves and offshore line pipe. These components require extensive manufacturing and lengthy delivery schedules.

OneSubsea secured the largest contract under the latest procurement program. Aker Solutions Mozambique will support in-country engineering, procurement, fabrication and manufacturing activities.

The scope includes subsea production systems, controls and umbilicals for the offshore development. These systems will form a critical connection between subsea production infrastructure and surface facilities.

Advanced Technology Valve will engineer, manufacture, test and deliver large-bore production valves. Meanwhile, Corinth Pipeworks will manufacture submerged arc welded line pipe.

Corinth Pipeworks will also handle coating, testing, and preservation and storage requirements. Sumitomo will supply seamless line pipe for the development.

Zhejiang Jiuli Hi-Tech Metals will manufacture mechanically lined pipe and associated products. Its package also covers induction bends, weld overlay products and related line pipe systems.

Together, these awards create an early procurement pipeline for equipment with significant manufacturing requirements. They also reduce potential delays during later construction phases.

The Rovuma LNG development also connects with Mozambique’s wider LNG infrastructure expansion, including the Matola LNG terminal planned in southern Mozambique. The terminal was designed to receive LNG initially from international markets before transitioning to gas from Mozambique’s Rovuma Basin reserves, creating a direct link between northern gas production and southern energy infrastructure.

Rovuma LNG Phase 1 Advances towards Final Investment Decision

The procurement strategy gives the project greater visibility as the Area 4 partners work toward FID. ExxonMobil expects the investment decision later in 2026, according to recent reporting.

Rovuma LNG previously faced a prolonged delay after security concerns forced the project to pause activities in 2021. ExxonMobil lifted force majeure on the project in November 2025.

Security conditions in Cabo Delgado remain an important consideration for the development. However, the latest procurement awards demonstrate continued commitment from the Area 4 partners.

The wider Rovuma LNG development will produce gas from offshore Area 4 resources. The project includes an onshore LNG facility with planned production of 18.6 million tones annually.

The development represents a major opportunity to expand Mozambique’s LNG export infrastructure. It could also generate substantial demand for engineering, construction, fabrication and logistics services.

The Area 4 concession contains some of Mozambique’s largest offshore natural gas resources. Therefore, Rovuma LNG could become a major long-term anchor for the country’s gas industry.

ExxonMobil operates the project through the Area 4 partnership. The consortium includes ENH, CNPC, Eni, KOGAS and XRG.

The project has also gained momentum through additional engineering activity. Earlier this month, Saipem signed a non-binding agreement with partners for preliminary engineering and procurement work.

That agreement adds another layer of preparation before the main construction contracts advance. Consequently, the project is building a stronger execution framework ahead of FID.

The latest $1.1 billion awards therefore represent more than equipment purchases. They establish manufacturing commitments that can help compress the construction schedule once the investment decision arrives.

Rovuma LNG Phase 1

Project Fact Sheet

Name: Rovuma LNG Phase 1

Type: Offshore natural gas development and onshore LNG project

Location: Cabo Delgado, northern Mozambique

Development area: Offshore Area 4, Rovuma Basin

Current phase: Pre-FID procurement and project development

Latest contract value: Approximately $1.1 billion

Planned LNG capacity: 18.6 million tonnes per year

Main development: Offshore gas production linked to onshore LNG facilities

Key procurement packages: Subsea systems, valves and offshore line pipe

Development objective: Monetise Mozambique’s offshore natural gas resources

Operator: ExxonMobil Mozambique

Partnership structure: Area 4 co-venturers

FID outlook: Targeted for 2026

Major construction significance: Long-lead equipment procurement ahead of FID

Primary industrial focus: Offshore production infrastructure and LNG facilities

Project Team

Operator and project lead: ExxonMobil Mozambique

Project developer: ExxonMobil

Area 4 co-venturer:

National Hydrocarbons Company and Area 4 partner: ENH

Area 4 co-venturer:

Subsea production systems contractor: OneSubsea

Engineering, procurement, fabrication and manufacturing support: Aker Solutions Mozambique

Production valves supplier: Advanced Technology Valve

Submerged arc welded line pipe supplier: Corinth Pipeworks

Seamless line pipe supplier: Sumitomo

Mechanically lined pipe and weld overlay supplier: Zhejiang Jiuli Hi-Tech Metals

Preliminary engineering and procurement contractor: Saipem

SMDC joint-venture partner:

Source: constructionreviewonline.com All rights reserved. Unauthorized reproduction prohibited.

Company profiles

Popular Posts

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *