Rovuma LNG Enters FEED: What Is Confirmed About the Mozambique Development

FEED Entry: What the Announcement Confirms

On August 27, 2024, the Area 4 concessionaires officially entered the Front-End Engineering Design (FEED) phase for the Rovuma LNG project in Mozambique. The operator, Mozambique Rovuma Venture (MRV), awarded and executed FEED contracts to competing EPC consortia. This is a significant milestone, but it is not a final investment decision (FID) or a vendor award. The FEED phase is expected to last about 16 months and is the last step before FID.

According to ExxonMobil's newsroom, the updated design is an electric LNG concept comprising 12 modules of 1.5 million tonnes per annum (MTA) each, for a total capacity of 18 MTA. The project will produce, liquefy, and market natural gas from the Area 4 block in the offshore Rovuma Basin. The modular e-LNG design, with modules fabricated offsite and assembled at Afungi, Mozambique, is intended to increase competitiveness, flexibility, and reduce on-site presence and execution risks. It also claims reduced greenhouse gas emissions compared to the previous concept.

What Is Not Confirmed: FID, Schedule, and Vendors

Despite the FEED entry, several critical details remain unconfirmed. The announcement does not specify the FID date, project schedule, or startup timing. ExxonMobil's project page states that the co-venturers are "jointly optimizing development plans and determining key milestones such as final investment decision (FID) and startup timing accordingly." This means that procurement and contracting decisions beyond FEED are still pending.

Additionally, the FEED contracts are for competing EPC consortia, but the announcement does not name the consortium members or the scope of their work. Buyers should not assume any specific vendor has been selected for EPC. The FEED phase will produce detailed engineering designs, cost estimates, and execution plans that will inform the final investment decision.

Project Background and Ownership

Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), a joint venture owned by ExxonMobil, Eni, and China National Petroleum Corporation (CNPC), holding a 70% interest in the Area 4 Exploration and Production Concession Contract. Galp, KOGAS, and Empresa Nacional de Hidrocarbonetos, E.P. each hold a 10% interest. ExxonMobil holds a 25% indirect interest in Area 4 and will lead the construction and operation of the future natural gas liquefaction facilities.

The Area 4 block contains more than 85 trillion cubic feet of natural gas, providing resources for multiple LNG projects. In 2021, the project design was changed from 15 MTA large trains to 18 MTA modular electric LNG due to market and security challenges. This redesign is said to provide more execution certainty, improved operational reliability, and lower greenhouse gas emissions.

Implications for EPC and Procurement Engineers

For EPC contractors and suppliers, the FEED phase is a critical window to align with the project's technical requirements. The modular e-LNG design means that prefabricated piping and installation will play a significant role. Offsite fabrication of modules reduces on-site work, but it increases the need for precise prefabrication and pre-assembly. Suppliers of prefabricated piping and installation services should monitor the FEED outcomes to understand the modular specifications and interface requirements.

Similarly, the project will require a vast array of pipe fittings, including seamless butt-welding fittings for cryogenic and high-pressure service. The 18 MTA capacity implies extensive piping networks for LNG processing, utilities, and offsites. Suppliers should prepare to meet stringent material and quality standards, such as ASME B16.9 for fittings and ASTM standards for materials.

Procurement Checks and RFQ Inputs

During FEED, buyers and suppliers should focus on the following:

• Verify project status: Confirm that FEED is ongoing and that FID has not yet been reached. Do not assume that purchase orders will be issued immediately.
• Understand the modular design: The e-LNG concept will dictate specific module dimensions, weight limits, and piping configurations. Suppliers should request detailed specifications from the EPC contractors once available.
• Material selection: For LNG service, materials must withstand cryogenic temperatures. Common choices include stainless steel (e.g., 304/316L) and 9% nickel steel. Ensure that fittings and flanges meet the required impact testing at low temperatures.
• Quality and inspection: Expect rigorous inspection requirements, including PMI testing, hydrostatic testing, and NDT. Suppliers should be prepared to provide full traceability and documentation, such as EN 10204 3.1 or 3.2 certificates.
• Logistics and packaging: For modular projects, delivery schedules are critical. Suppliers must ensure that packaging is suitable for sea freight and that delivery dates align with module fabrication schedules.

Common Risks and How to Mitigate

• Assuming FID is imminent: FEED does not guarantee FID. The project could be delayed or cancelled. Avoid committing to large capital expenditures based on FEED alone.
• Overlooking local content requirements: Mozambique may require local participation in the supply chain. Understand the local content policies and plan accordingly.
• Underestimating technical complexity: The modular e-LNG design is complex. Ensure that your engineering team has experience with modular LNG projects.
• Ignoring security and logistics: The Afungi site is in a remote area with security challenges. Plan for logistics and security risks in your bid.

Inspection and Documentation Points

When supplying piping components for Rovuma LNG, expect the following documentation requirements:

• Material test certificates (MTCs) per EN 10204, with 3.1 or 3.2 as specified.
• Dimensional inspection reports per ASME B16.9 or other applicable standards.
• NDT reports (RT, UT, PT, MT) as required by the specification.
• Heat treatment charts and hardness test reports.
• PMI test results for alloy verification.
• Traceability documentation from raw material to finished product.

Ensure that your quality management system can provide these documents in a timely manner.

Conclusion

The Rovuma LNG FEED entry is a positive step for the project, but it is not a green light for procurement. EPC buyers and suppliers should use this time to prepare, align with the modular design, and verify all technical and commercial details before committing. For more insights on prefabricated piping and installation, visit our prefabricated piping and installation page. For seamless butt-welding pipe fittings, see our seamless butt-welding pipe fittings page.

Sources

• Area 4 concessionaires enter FEED stage for Rovuma LNG project
• Rovuma LNG project | ExxonMobil in Mozambique