Saipem Moves Forward with Preliminary Work on $30 Billion Rovuma LNG Project

Rovuma LNG, a major liquefied natural gas project in Mozambique, has taken another step towards its final investment decision (FID) after Saipem signed a letter of intent with ExxonMobil to begin preliminary engineering and acquisition work.

The estimated $30 billion project includes an onshore plant with a planned capacity of 18.6 million tons per year, which will be developed by ExxonMobil as the delegated operator for the construction and operation of the Rovuma LNG facility.

Saipem's move comes after McDermott announced its involvement in this new phase; both companies are part of the consortium that received the front-end engineering and design contract in August 2024. The joint venture SMDC, which also includes Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation (CPECC), will participate in this stage through the limited engineering and procurement activities with an initial value of $32 million.

The project is part of the development of the Area 4 block of the Rovuma Basin, where natural gas resources are estimated at approximately 85 trillion cubic feet. The partners' final investment decision and necessary authorizations will be crucial for the future development of Area 4.