Rovuma LNG Project Awards Onshore Contract

Rovuma LNG Project in Mozambique Awards Onshore EPC Contract

Area 4 operator Mozambique Rovuma Venture has awarded a contract for the engineering, procurement and construction for the Rovuma LNG onshore liquefied natural gas production complex to a consortium made up of JGC, Fluor and TechnipFMC (JFT).

The award enables the start of activities for the Rovuma LNG project, as approved by the government of Mozambique in June 2019, while the Area 4 partners continue to work toward a final investment decision next year.

The Rovuma Mozambique LNG project will produce, liquefy and market natural gas from three reservoirs of the Mamba complex located in the Area 4 block in the offshore Rovuma Basin. The project includes construction of two natural gas liquefaction trains, with a total LNG nameplate capacity of 15.2 million tonnes annually and associated onshore facilities. The venture also announced it has received government approval of LNG sales and purchase agreements for the total capacity of the Rovuma LNG project.

The Area 4 partners will advance midstream and upstream early project activities of more than US$500 million as initial investments. Project work will include development of a construction camp, resettlement activities, construction of an airstrip and access roads, and the start of detailed engineering of the LNG facilities.

“The awarding and execution of the onshore EPC contract is a significant step forward developing the world-class Rovuma LNG project,” said Peter Clarke, Global Head of LNG at ExxonMobil. “We will continue to work with the government to maximize the long-term benefits this project will bring to the people of Mozambique.”

“The award of the EPC contract shows the partners’ commitment to a steady progress, to ensure project completion and production startup in line with expectations and to the benefit of the country,” said Alessandro Puliti, Eni’s Chief Upstream Officer.

“The event that we witnessed today marks an important milestone in the progress towards the final investment decision that we expect to be announced in the first half of 2020,” said Filipe Jacinto Nyusi, President of the Republic of Mozambique. “It means that the Area 4 Rovuma LNG project in the Rovuma Basin is able to move to the next stages of development, construction, production and marketing.”

With the progress to date, Rovuma LNG continues to plan for start of production in 2025.

About Mozambique Rovuma Venture

Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), an incorporated joint venture owned by Eni, ExxonMobil and 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 hold a 10 percent interest in Area 4. 

ExxonMobil is leading the construction and operation of natural gas liquefaction and related facilities on behalf of MRV, and Eni is leading the construction and operation of upstream facilities.