ExxonMobil starts front end engineering design ahead of mega gas project decision in Mozambique

News flash

• Area 4 has officially entered the Front-End Engineering Design (FEED) phase of Rovuma LNG. 
• Area 4 Operator, Mozambique Rovuma Venture (MRV) has awarded and executed FEED contracts to compete for the engineering, procurement and construction (EPC) of the Rovuma LNG development.
• This FEED phase is expected to take around 16 months and is the last step before a Final Investment Decision (FID).
• The mega project FID has been delayed due to ongoing instability in the Cabo Delgado region. 
• TotalEnergies had to call force majeur on their US$ 20 billion LNG project in 2021 due to ongoing terror attacks by islamic insurgents at their compound in Alfungi. Read more 

Final Investment Decision (FID) is a crucial milestone in the development of a major project, especially in industries like energy, infrastructure, and large-scale construction. It represents when a company or investor commits significant financial resources to proceed with the project’s execution.

McDermott was chosen to lead the consortium also made up of Saipem and China Petroleum Engineering and Construction Corporation, with up to 16 months to complete the technical and engineering design, known as FEED (Front End Engineering Design), of the Rovuma LNG project.

The Rovuma LNG Project will produce, liquefy and market natural gas from reservoirs of the Area 4 block of the offshore Rovuma Basin and includes the construction of 12 modules of 1.5 MTA each, with a total LNG capacity of 18 million tonnes annually, as well as associated onshore facilities. The collaboration with the EPC consortiums will ensure a robust and efficient FEED process, setting the stage for a successful project implementation. The modular e-LNG design, with modules fabricated offsite and then assembled at Afungi, Mozambique, is expected to increase project competitiveness, flexibility, and to reduce presence on-site and execution risks. In addition, this design will have reduced GHG emissions than the previous concept.

Commenting on the latest RLNG project milestone, Frank Kretschmer, President of ExxonMobil Mozambique, said “The award and execution of the FEED contracts is a meaningful step forward to developing the world-class Rovuma LNG project. We will continue to work with the Government to maximize the long-term benefits this project will bring to the people of Mozambique.”

Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), a joint venture owned by ExxonMobil, Eni and China National Petroleum Corporation (CNPC), which holds a 70 percent interest in the Area 4 Exploration and Production Concession Contract; in addition to MRV, Galp, KOGAS and Empresa Nacional de Hidrocarbonetos, E. P. Each holds a 10 percent interest in Area 4.

Author: Bryan Groenendaal