ExxonMobil and its Area 4 partners have awarded approximately $1.1 billion in pre-investment contracts for the Rovuma LNG Phase 1 project in Mozambique’s Cabo Delgado province, advancing one of Africa’s largest proposed liquefied natural gas developments toward a final investment decision.
The contracts cover critical long-lead upstream equipment including subsea production systems, large-bore production valves and offshore line pipe. The awards allow suppliers to begin manufacturing specialised components before FID, potentially reducing delays once full project execution begins.
Key Overview
- ExxonMobil and the Area 4 partners have awarded about $1.1 billion in pre-investment contracts.
- The contracts support Rovuma LNG Phase 1 in Cabo Delgado, Mozambique.
- Equipment covered includes subsea production systems, large-bore valves and offshore line pipe.
- OneSubsea received the largest contract, with Aker Solutions Mozambique supporting in-country work.
- Other suppliers include Advanced Technology Valve, Corinth Pipeworks, Sumitomo Corporation of America and Zhejiang Jiuli Hi-Tech Metals.
- Area 4 partners include ENH, CNPC, Eni, KOGAS and XRG.
- Rovuma LNG is designed for 18.6 million tonnes of LNG production annually.
- The partners are progressing toward a final investment decision in 2026.
$1.1 Billion Secures Critical Equipment Ahead of FID
The latest contracts represent a significant commitment before the project has reached its full financial sanction. ExxonMobil, acting on behalf of the Area 4 co-venturers, is securing equipment that can require lengthy engineering, manufacturing and delivery periods.
The largest contract was awarded to OneSubsea UK Limited and OneSubsea AS for engineering, procurement, fabrication and manufacturing services involving subsea production systems, controls and umbilicals. Aker Solutions Mozambique will support portions of the work carried out in the country.
Advanced Technology Valve will provide large-bore production valves, while Corinth Pipeworks will manufacture and prepare submerged arc welded line pipe. Sumitomo Corporation of America will supply seamless line pipe, and Zhejiang Jiuli Hi-Tech Metals will manufacture mechanically lined pipe, induction bends and other specialised components.
Starting these activities before FID can shorten the time between formal project approval and construction by ensuring that components with extended production schedules are already moving through the supply chain.
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Rovuma LNG Moves Closer to Development
The contract package follows another important project milestone. Earlier in August, ExxonMobil and its partners selected the SMDC joint venture for limited engineering and procurement work supporting the onshore LNG facilities.
The consortium brings together Saipem, McDermott Energy Solutions, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation. Its selection advances planning for the midstream portion of Rovuma LNG as partners work toward a final investment decision in 2026.
The latest design envisages an onshore development with 18.6 million tonnes of annual LNG production capacity. The facility is expected to use 12 modular liquefaction units, with project start-up currently anticipated in 2031.
Rovuma LNG will process natural gas produced from offshore Area 4 in the Rovuma Basin, one of the major gas discoveries that placed Mozambique among the countries with significant undeveloped LNG export potential.
Mozambique Eyes Major Economic Benefits
The project could become one of the largest private investments in Mozambique’s history if it proceeds to full development. ExxonMobil estimates that Rovuma LNG could generate approximately $150 billion in government revenues over a 30-year operating period.
The consortium has also begun investing in local workforce development. In May 2026, the Rovuma LNG partners committed $40 million to a technology and training centre designed to prepare Mozambican workers for employment in LNG and other industrial sectors.
Progress on Rovuma LNG follows years of delays linked partly to security instability in northern Mozambique. ExxonMobil lifted force majeure on the project in November 2025, allowing development activities to accelerate as security conditions around key project areas improved.
The $1.1 billion contract programme therefore represents more than a procurement exercise. By committing substantial capital to equipment before FID, ExxonMobil and its partners are signalling increasing confidence in moving Rovuma LNG from planning toward construction.
The next major milestone will be the final investment decision. If sanctioned as planned, Rovuma LNG would add substantial new LNG capacity to global markets while making natural gas development an even larger component of Mozambique’s long-term investment and export strategy.
Sources: ExxonMobil / Reuters / TradeArabia
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