Rovuma LNG Ramps Up Contract Activity as Mozambique Project Nears FID

Two Mozambican companies have secured contracts to support ExxonMobil’s Rovuma LNG project in northern Mozambique, giving local businesses a larger role as the multibillion-dollar development moves closer to a final investment decision. CFML Logistic and Alistair Group Mozambique will provide logistics and shorebase services in Pemba for activities linked to drilling and offshore operations in Area 4.

CFML Logistic will handle land and infrastructure services at the Pemba Bulk Terminal, while Alistair Group Mozambique will provide logistics support for the Area 4 drilling campaign and related offshore work. The contract values were not disclosed.

More work going to local companies

Johanna Boothey, ExxonMobil Mozambique’s Lead Country Manager and Chairperson, said the awards are part of the project’s focus on developing local capabilities.

The contracts are expected to support businesses in Mozambique while also strengthening port infrastructure that could eventually serve industries outside oil and gas.

The latest awards come alongside the selection of Saipem and Jan De Nul for engineering, procurement, construction and installation work covering Rovuma LNG’s upstream development.

The consortium will support planning for an upstream development involving 18 wells and subsea pipelines and manifolds. The final EPCI award remains subject to the project reaching FID and receiving necessary government/regulatory approvals.

These latest contracts follow earlier commitments from Area 4 partners. In August, consortium awarded about $1.1bn in pre-investment contracts for long-lead equipment and early construction activities.

$30 billion project

Rovuma LNG is planned as a major LNG development in the Rovuma Basin. Phase 1 is expected to include 12 liquefaction modules with a combined capacity of 18.6mtpa. Estimated at around $30bn, the project is targeting its first LNG cargo in 2031.

Developed in Area 4 by Mozambique Rovuma Venture, the project involves ENH, Eni, CNPC, KOGAS and XRG, with ExxonMobil delegated as operator.

Security problems in Cabo Delgado forced a prolonged suspension in 2021. Work moved forward after the consortium lifted force majeure and restarted preparations.

ExxonMobil expects FID in 2026. The company says Rovuma LNG could generate about $6bn in economic activity in Mozambique during construction and create opportunities for around 7,500 Mozambicans.

Local supply chain gets a bigger role

The latest contracts give Mozambican companies a direct role in preparing infrastructure and logistics for the next stage of the project. For CFML Logistic and Alistair Group, the awards provide access to activity linked to one of the country's largest planned industrial developments.

For Mozambique, local contracting could build capabilities and infrastructure that are useful beyond LNG.

The latest contracts come as preparations for Rovuma LNG advance ahead of a final investment decision expected later this year. If approved, the project would unlock billions of dollars in investment while creating new opportunities for Mozambican businesses and workers.