ExxonMobil, on behalf of the Area 4 partners, has awarded approximately $1.1 billion in pre-final investment decision (FID) contracts for long-lead equipment supporting the Rovuma LNG Phase 1 development offshore Mozambique.
The contracts cover critical upstream and offshore equipment required to develop the project’s natural gas resources in Area 4 of the Rovuma Basin and supply the planned onshore LNG facility.
The awards represent another step toward advancing engineering and procurement activities ahead of a potential FID.
Subsea and offshore equipment contracts
The contracts cover engineering, procurement, fabrication and manufacturing of several key components for the offshore gas development.
These include:
- Subsea production systems, controls and umbilicals
- Large-bore production valves
- Offshore line pipe
- Seamless line pipe
- Mechanically lined pipe
- Induction bends and weld overlay products
OneSubsea UK Limited and OneSubsea AS, supported in Mozambique by Aker Solutions Mozambique, received the largest contract for subsea production systems, controls and umbilicals.
Advanced Technology Valve will supply large-bore production valves, while Corinth Pipeworks will manufacture and supply submerged arc welded line pipe.
Sumitomo Corporation of America will provide seamless line pipe, while Zhejiang Jiuli Hi-Tech Metals will supply mechanically lined pipe, induction bends, weld overlay products and associated line pipe systems.
Advancing Rovuma Basin gas development
The equipment awards are intended to secure long-lead components and support project execution once FID is reached.
Rovuma LNG Phase 1 is designed to develop natural gas resources in Area 4 of the Rovuma Basin and transport the gas to an onshore liquefaction facility at the Afungi Peninsula.
The planned LNG facility is expected to have a capacity of approximately 18.6 million tonnes per annum (mtpa) across 12 modular trains.
The project is currently targeting start-up around 2031, subject to FID and the required approvals.
Offshore infrastructure supports LNG development
The upstream contracts demonstrate the scale of infrastructure required to move offshore natural gas from production fields toward LNG processing facilities.
Subsea production systems, production valves and offshore pipelines will form an important part of the gas-gathering and transportation infrastructure connecting offshore production to the wider Rovuma LNG development.
The procurement activity is therefore expected to create opportunities across the subsea, pipeline, offshore fabrication, engineering and equipment supply sectors.
Major international project partnership
The Area 4 partnership includes Mozambique’s ENH, CNPC, Eni, KOGAS and XRG, with ExxonMobil acting as operator for the Rovuma LNG development.
The latest awards follow other project preparation activities as the partners continue to advance the development toward a potential FID.
For Mozambique’s gas industry, Rovuma LNG represents a major opportunity to expand offshore gas production and establish additional LNG export capacity.
The development could also generate significant demand for offshore engineering, subsea equipment, pipeline systems, valves, fabrication and other oil and gas services as the project progresses toward construction and production.
