ExxonMobil Awards $1.1 Billion in Contracts for Mozambique LNG Project

ExxonMobil's Rovuma LNG project in Mozambique has taken a significant step forward after the company awarded $1.1 billion in pre-investment contracts for critical equipment, signaling that the long-delayed development is moving towards a final investment decision in 2026.

The contracts cover subsea production systems, large-bore valves, and offshore line pipe for the project in Cabo Delgado, where security concerns have repeatedly delayed large-scale gas investments. While these awards are not the same as a final investment decision, they indicate that ExxonMobil and its partners are willing to commit capital ahead of FID to preserve the development timetable.

The Rovuma LNG project is designed to produce 18 million tonnes per year, with Eni saying it will use gas from the Mamba complex in Area 4 and modular onshore liquefaction trains. The project's progression has been delayed for years due to security concerns, market conditions, and project restructuring.

Mozambique's government and project partners have begun investing in local skills, with ExxonMobil and ENH breaking ground on a $40 million training facility in Maputo. This initiative is crucial as the employment impact of a capital-intensive LNG project can easily be misunderstood, with construction creating thousands of jobs but permanent workforce being much smaller.