McDermott Energy Solutions (UK), a subsidiary of McDermott and majority shareholder in the SMDC joint venture, has received a letter of intent from ExxonMobil Moçambique Limitada for limited engineering and procurement services for the Rovuma LNG Phase 1 midstream development.
The award supports continued project planning and definition
as the Area 4 partners work toward a final investment decision expected in
2026.
The SMDC joint venture comprises McDermott, Saipem, Daewoo
Engineering & Construction and China Petroleum Engineering &
Construction Corporation.
The onshore Rovuma LNG development is expected to feature 12
modular liquefaction trains with combined production capacity of 18.6 million
tonnes of LNG per year. Start-up is targeted for 2031.
McDermott will undertake engineering for the inside battery
limits, including the liquefaction modules, from its London and Gurgaon
offices, with project management support provided to the joint venture team in
Milan.
"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."
"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."
Rovuma LNG is ExxonMobil’s largest single investment and is
expected to generate about $150 billion in revenues for Mozambique’s government
over the project’s 30-year life.
A Standard Bank macroeconomic study estimates the project could contribute around $11 billion annually to Mozambique’s GDP and support more than 150,000 jobs, highlighting its potential economic impact on the country. -OGN/TradeArabia News Service
