Along the coastline of northern Mozambique, the massive gas veins dormant in the Ruvuma Basin are slowly awakening. From deep-sea exploration to onshore construction, this energy artery that spans many years is steadily moving towards substantial construction, crossing key bottlenecks in the early stages of preparation.

The project is entering a stage of progress

Following the disclosure of project updates by partner McDermott, Italian energy engineering service provider Sepem confirmed that the next phase of the highly anticipated Mozambique LNG project in Africa is progressing smoothly, and various new signs indicate that this multi billion dollar project is steadily moving towards the final investment decision (FID). Following McDermott's public statement, Sepem confirmed receipt of the letter of intent for the first phase of the Mozambique Rovuma LNG project led by ExxonMobil. The SMDC joint venture consortium, consisting of McDermott, Sepem, Daewoo Engineering Construction, and China Petroleum Engineering Construction Group, has won the project. However, the formal award still needs to wait for the final investment decision and government regulatory approval. The relevant process is expected to be completed within 2026.

Overview of project parties and budget

This letter of intent was signed by ExxonMobil on behalf of all partners in Block 4. The MRV joint venture between Rovuma and ExxonMobil, Eni Group, and PetroChina holds a 70% stake in Block 4 and is responsible for its operations; Korea Gas Corporation, Mozambique National Oil Company, and XRG Company, a subsidiary of Abu Dhabi National Oil, each hold a 10% stake. The estimated total investment for the entire Luowuma LNG project is about 30 billion US dollars.

This letter of intent corresponds to limited preliminary engineering and procurement business, used to improve the project plan and implementation plan, with an intention amount of 32 million US dollars. The formal EPC general contracting contract of SMDC consortium must wait for the final investment decision of the 4th block partner and obtain various government regulatory approvals. The related work is expected to be implemented in 2026. Previously, the SMDC consortium had won the front-end engineering design FEED contract for the project in August 2024. Luowuma LNG plans to build an onshore liquefaction plant on the Afengji Peninsula, with two production lines and 12 sets of liquefaction modules, with a designed annual LNG production capacity of 18.6 million tons. Keywords: LNG, Mozambique FID

Resources and Future Planning

As a member of the consortium, Sepem will rely on its own experience in large-scale LNG engineering construction to undertake the pre project engineering procurement related work. The company stated that the letter of intent further solidifies its position in the LNG industry and reflects its ability to undertake large-scale complex energy projects, helping to advance this global key LNG project.

The estimated natural gas resources in Block 4 of the Rovuma Basin amount to 85 trillion cubic feet, including Eni Group's already operational South Coral Floating LNG project, the planned North Coral Floating LNG project, and ExxonMobil led Rovuma onshore LNG project. MRV is responsible for the operation of the licensed block in Block 4, and ExxonMobil Mozambique is the designated operator of the Rovuma LNG facility, undertaking construction and post operation tasks. The project is planned to be put into operation by 2031.Editor/Gong Ziwei