ExxonMobil has selected McDermott, an American engineering company, to lead a consortium for the next phase of a natural gas megaproject in Mozambique. This significant project, set to be completed next year, involves preparing the detailed engineering design for gas production from the Rovuma basin—one of the largest natural gas reserves in the world.
This collaboration marks a key step toward what is known as the Final Investment Decision (FID), a pivotal milestone in large-scale projects like these. When companies reach the FID, they are making a commitment to move forward with full-scale execution, bringing significant financial resources and infrastructure into play.
According to the details reviewed by Lusa, McDermott, along with partners Saipem and China Petroleum Engineering and Construction Corporation, has been tasked with completing the FEED—Front End Engineering Design—of the project within 16 months. The Rovuma LNG project, set in Mozambique’s Cabo Delgado province, is designed to produce 18 million tonnes of liquefied natural gas (LNG) annually. This is an upgrade from the original 15.2 million tonnes expected, marking the ambitious scale of the project.
McDermott’s statement, shared from its Houston office, highlights how this project will stimulate economic growth in Mozambique. The gas, extracted from offshore Area 4 fields, will be liquefied and exported, potentially transforming the country’s role in the global energy market. ExxonMobil, responsible for building onshore facilities as part of the consortium, sees this as a significant step in bringing innovation and excellence to the oil and gas sector.
Beyond ExxonMobil, the consortium also includes key global players like Italy’s Eni and China’s China National Petroleum Corporation (CNPC). Together, they hold a stake in the Area 4 Exploration and Production Concession Contract, which governs the extraction of the natural gas.
During a meeting in New York with the Mozambican president, ExxonMobil’s vice president, Walter Kansteiner, confirmed that the project’s technical design would be finalized within a year. His optimism reflects the progress being made on FEED, a critical phase in such a massive endeavor.
Mozambique’s president, Filipe Nyusi, had previously mentioned that ExxonMobil is likely to finalize its decision on the project around 2026, despite ongoing security challenges in Cabo Delgado, a province that has endured terrorist attacks for nearly seven years. Despite these challenges, ExxonMobil remains committed to moving forward with a project that could become the largest LNG initiative in African history.
With three major natural gas development projects approved in Mozambique, the country stands at the threshold of a new era of energy production. Although one of these projects, led by TotalEnergies, remains suspended due to security concerns, the Rovuma LNG project continues to advance, promising a brighter future for both Mozambique and the global energy landscape.
