ExxonMobil and its partners have awarded approximately $1.1 billion in pre-investment contracts for critical upstream equipment for the Rovuma LNG Phase 1 project in Mozambique’s Cabo Delgado province, marking a major step toward restarting one of Africa’s largest proposed gas developments, CNBC Africa reported. The contracts cover long lead items including subsea production systems, large bore production valves and offshore line pipe, with ExxonMobil acting on behalf of partners including Eni, CNPC, KOGAS, XRG and Mozambique’s ENH.
The awards are intended to move the project closer to a final investment decision, which ExxonMobil now expects by the end of 2026. Rovuma LNG is designed to process gas from Mozambique’s offshore Area 4 resources through an onshore liquefaction facility comprising two trains with combined capacity of approximately 15.2 million tonnes per year. The project has an estimated overall cost of about $30 billion and had been delayed since 2021 following an insurgency in Cabo Delgado.
The renewed investment is significant for Mozambique and Africa’s energy industry. Rovuma LNG could generate substantial export revenues, government income and industrial activity while positioning Mozambique as a major global LNG supplier. For international energy companies, the project has gained additional strategic relevance as disruptions to LNG supplies from the Middle East increase the value of geographically diversified gas production. ExxonMobil has also lifted force majeure on the project, signalling greater confidence in moving development activities forward.
The immediate focus will be on completing engineering and procurement work, resolving remaining security challenges and reaching the final investment decision. If approved, construction of Rovuma LNG would represent a major revival of Mozambique’s stalled gas industry and could strengthen the country’s position in the global LNG market while attracting billions of dollars in additional investment into Cabo Delgado and the wider Mozambican economy.
