McDermott Wins EPC Roles on Resumed Mozambique LNG Projects

# What happened Developers restarted two major liquefied natural gas projects in Mozambique's Cabo Delgado province after work was halted in 2021 because of insurgent violence. McDermott International has been named as a member of EPC joint ventures for both projects: Rovuma LNG, managed by ExxonMobil and partners, and the separate Mozambique LNG developed by TotalEnergies and partners.

# Who is involved Rovuma LNG's owner group is led by ExxonMobil and includes Empresa Nacional de Hidrocarbonetos of Mozambique, China National Petroleum Corp., Eni, Korea Gas Corp. and Abu Dhabi National Oil Co. The Rovuma EPC joint venture includes McDermott, Saipem, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corp.

Mozambique LNG is led by TotalEnergies. McDermott's partners for onshore work on that project include Saipem and Chiyoda Corp.

# Project scope and schedule Rovuma LNG is described as potentially costing up to $32 billion and is targeted to produce about 18.6 million metric tons of LNG annually. The onshore plant will be on the Afungi Peninsula and is planned with a modular, pre-fabricated design featuring two LNG trains and 12 liquefaction units. Operation is projected in 2031, contingent on final investment decision timing.

# Contracts and early work ExxonMobil announced it awarded $1.1 billion in early contracts for critical long-lead upstream equipment and issued a letter of intent approving $32 million in initial joint-venture work. Other early awards include a contract valued up to $250 million to Corinth Pipeworks for 250 kilometers of submerged arc-welded linepipe and component work assigned to OneSubsea, Advanced Technology Valve, Sumitomo Corp. of America and Zhejiang Jiuli Hi-Tech Metals.

# McDermott's role and organization McDermott said it will execute project engineering and management using staff based in the U.K., India and Italy. The firm highlighted its execution of the front-end engineering and design analysis for Rovuma LNG as a basis for advancing into EPC phases. McDermott is signed to perform onshore construction work on both Rovuma LNG and Mozambique LNG as part of multi-contractor teams.

# Economic and regional context McDermott cited a global economic study (attributed by the company) projecting the Rovuma project could add about $11 billion annually to Mozambique's GDP. Security concerns that halted the programs in 2021 delayed project timelines until force majeure was lifted last November.

# What remains uncertain Final EPC contract values and definitive FIDs remain to be completed. Project schedules depend on those decisions, on continued security stability in Cabo Delgado and on execution of long-lead procurement and modular manufacturing plans.

# Bottom line Both large LNG projects in Mozambique are back in motion with major contractors named and early contracts awarded. McDermott holds roles on both onshore EPC teams, but full contract totals and final investment decisions have yet to be finalized.