Mozambique’s long-held dreams of natural gas have got a fresh boost following an estimated $1.1 billion contract award by ExxonMobil for the Rovuma LNG Phase 1 project in Mozambique’s Cabo Delgado region.
The signing of the contracts represents a big leap towards FID for the project, whose objective is to build onshore LNG facilities with the capacity to produce around 18 million tonnes of LNG per year. According to Reuters, the latest contracts are for equipment for the project’s upstream development.
The news comes as Mozambique tries to get back into the gas business after years of delays caused by insecurity in Cabo Delgado.
ExxonMobil Awards Rovuma LNG Contract Worth $1.1 Billion
ExxonMobil has announced the award of several contracts for the Rovuma LNG Project in the Area 4 off the coast of Mozambique to various companies.
The contract relates to several key pieces of equipment like subsea production systems and controls and large-bore production valves as well as offshore line pipe. Subsea production systems and controls will be provided by OneSubsea UK and OneSubsea AS, while others in the procurement exercise are also international/local firms.
ExxonMobil is taking the lead in developing the Rovuma LNG project and owns a 25 percent indirect interest in Area 4. Other partners are Eni, China National Petroleum Corporation, Mozambique’s ENH, Korea Gas Corporation and XRG.
Rovuma LNG Aims For 18 Million Tonne Annual Production
Rovuma LNG project aims at becoming an onshore LNG liquefaction plant using gas resources from Mozambique’s Area 4.
Currently, the project being developed by ExxonMobil will have 18 million tonnes of capacity per annum using modular electric LNG facilities. Earlier, the firm had indicated that there would be 12 modules of LNG facilities with 1.5 million tonnes per annum capacity each.
The project is supposed to produce gas extracted from the Rovuma Basin, which holds the largest undeveloped gas reserves on the planet.
Security Issues Impeded Plans for Mozambique’s LNG Plant
The development of Rovuma LNG has been delayed due to the growing security problems in the region of Cabo Delgado.
In 2021, ExxonMobil announced force majeure regarding the project as a result of an Islamist attack on its facilities in the vicinity. The company removed the force majeure in November 2025, announcing the ability to proceed towards the development of the project.
Recent contract awards imply that the project is proceeding towards its development despite the security issues that still persist in the north of Mozambique.
ExxonMobil is expected to make the final investment decision in 2026, while the project remains aimed at early 2030s production.
Mozambique Can Earn Billions With Rovuma LNG
If the project proceeds to development, then it can become an important source of income for Mozambique.
According to estimates made by ExxonMobil, Rovuma LNG may provide about $150 billion of revenue for Mozambique’s state budget within 30 years.
An independent analysis from Standard Bank in 2026 also projected that the project could contribute about $11 billion per year to the GDP of Mozambique and create about $4 billion in fiscal revenues each year. Furthermore, the study suggested that the project could potentially support as many as 151,000 jobs.
The potential benefits for an economy trying to increase its energy exports and improve its finances make this project very important for the country.
LNG Project Could Increase Development of Mozambique’s Energy Industry
The Rovuma LNG is part of the overall development of Mozambique’s natural gas industry.
Rovuma Basin of Mozambique is known to have massive offshore natural gas reserves, and several LNG projects are already in the production phase or approaching production. The IMF expects Rovuma LNG to have about 18 million tonnes per year capacity, with production scheduled to start by 2031.
In the case of ExxonMobil reaching FID, the project can boost Mozambique’s status as an LNG exporting nation.
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