ExxonMobil, a major American global energy company, has awarded about $1.1 billion in pre-investment contracts for equipment for the Rovuma LNG Phase 1 project in Mozambique, marking a major step toward a final investment decision on one of Africa’s largest natural gas developments.

The contracts cover subsea production systems, large-bore production valves and offshore line pipe for the project in the deep waters of the Rovuma Basin, off Mozambique’s northern Cabo Delgado province.

ExxonMobil awarded the contracts on behalf of the Area 4 partners, which include Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH), China National Petroleum Corp., Italy’s Eni, Korea Gas Corp. and Abu Dhabi National Oil Co.’s XRG.

Global suppliers join Mozambique gas project

The largest contract went to OneSubsea UK and OneSubsea AS, covering engineering, procurement, fabrication and manufacturing of subsea production systems, controls and umbilicals.

Aker Solutions Mozambique will support the project’s in-country work, while other suppliers include Advanced Technology Valve, Corinth Pipeworks, Sumitomo Corporation of America and Zhejiang Jiuli Hi-Tech Metals.

The contracts are designed to help advance engineering and equipment procurement as ExxonMobil and its partners work toward the project’s final investment decision.

$30 billion Rovuma LNG project

Rovuma LNG is a proposed $30 billion natural gas project targeting annual production of about 18.6 million tonnes of liquefied natural gas. Production is expected to begin in 2031.

ExxonMobil, formed in 1999 through the merger of Exxon and Mobil, is headquartered in Spring, Texas. The company explores for oil and natural gas, produces petrochemicals and develops lower-emission technologies through brands including Exxon, Esso and Mobil.

The latest investment follows ExxonMobil’s decision to lift force majeure on the Rovuma LNG project in November, after the company paused operations in 2021 because of security concerns in Mozambique.

For Mozambique, the project represents a major potential source of natural gas exports, investment and government revenue, while also placing Cabo Delgado at the center of Africa’s growing LNG industry.