ExxonMobil and its partners have awarded approximately $1.1 billion in contracts for long-lead equipment and early work on Mozambique's Rovuma LNG Phase 1 project, the company said Monday.
The contracts cover subsea production systems, large-bore valves and offshore line pipe needed to develop natural gas resources in Area 4, offshore Cabo Delgado.
ExxonMobil Mozambique is advancing the project on behalf of the Area 4 partners, including Mozambique's state-owned ENH, China National Petroleum Corp., Eni, Korea Gas Corp. and Abu Dhabi-based XRG.
The largest contract was awarded to OneSubsea UK and OneSubsea AS for engineering, procurement and manufacturing of subsea production systems, controls and umbilicals, with Aker Solutions Mozambique supporting work in the country.
- Rovuma LNG moves closer to final investment decision
Other contracts were awarded to Advanced Technology Valve for production valves, Corinth Pipeworks and Sumitomo Corporation of America for line pipe and China's Zhejiang Jiuli Hi-Tech Metals for mechanically lined pipe and related equipment.
Early contracts will allow manufacturers to begin work on equipment with long production and delivery schedules, helping reduce potential supply-chain delays once the project receives full approval.
The contracts do not constitute a final investment decision, but mark a significant step toward the development of the project.
Rovuma LNG is designed to develop offshore gas reserves in Area 4 and supply an onshore liquefaction complex with planned capacity of 18.6 million tons per year.
Mozambique has some of Africa's largest discovered natural gas resources, but development of its LNG industry has faced delays, including security concerns in Cabo Delgado and disruptions affecting other projects in the region.
Rovuma LNG project is expected to strengthen Mozambique's position in international gas markets by adding a major LNG supply source from East Africa.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
