McDermott Energy Solutions (UK) Limited, a subsidiary of McDermott and a majority shareholder in the SMDC joint venture with Saipem S.p.A., Daewoo Engineering & Construction Co. Ltd. and China Petroleum Engineering & Construction Corporation (CPECC), has been awarded by ExxonMobil Moçambique Limitada, on behalf of the Area 4 partners, a letter of intent including limited engineering and procurement services for the continuation of the Rovuma LNG Phase 1 midstream development.

This work supports continued project definition and planning as the Area 4 partners progress toward a final investment decision, expected in 2026. The SMDC joint venture brings extensive global experience in the engineering, procurement, and construction of LNG facilities.

“Our work on Rovuma LNG builds on McDermott’s established LNG expertise in Mozambique and our disciplined approach to execution,” said Michael McKelvy, Chief Executive Officer and Chair of the Board for McDermott. “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.”

The Rovuma LNG project onshore development is expected to include 12 modular liquefaction modules designed to produce 18.6 million tonnes of LNG per year, with start-up anticipated in 2031. The Rovuma LNG project is ExxonMobil’s largest single investment.

“This award reflects the strength of our long-standing relationship with ExxonMobil and our ability to deliver complex LNG developments,” added Rob Shaul, McDermott’s Senior Vice President of Low Carbon Solutions. “Having successfully executed front-end engineering design (FEED) for Rovuma LNG, we are well positioned to advance the project into its next phase.”

Engineering of the inside battery limits (ISBL), including the liquefaction modules, will be executed by McDermott from its London and Gurgaon offices, with project management seconded to the JV team based in Milan.

Rovuma LNG is expected to deliver approximately US$150 billion in revenues to the Government of Mozambique over the project’s 30-year life. Additionally, the Rovuma LNG project, led by ExxonMobil in Area 4, could add around US$11 billion annually to Mozambique’s Gross Domestic Product (GDP), and employ more than 150,000 people according to a macroeconomic study released by Standard Bank.