# Saipem-led SMDC joint venture signs letter of intent for Rovuma LNG onshore plant

> McDermott, Daewoo E&C and CPECC are Saipem’s partners for the two-train, 12-module plant of about 18.6 Mtpa on the Afungi Peninsula.

- Topic: Letter of intent and early works
- Event date: 2026-08-07
- First published on EPC Feed: 2026-10-24T06:44:58.097Z
- Updated: 2026-10-24T06:44:58.097Z
- Value: USD 32,000,000 (Initial value of the letter of intent; the EPC contract value is not disclosed.)
- Companies: Saipem, McDermott, Daewoo Engineering & Construction, China Petroleum Engineering & Construction Corporation, ExxonMobil Moçambique
- Countries: Mozambique
- Page: https://epcfeed.com/news/smdc-joint-venture-letter-of-intent-rovuma-lng-onshore


## Key facts

- Client: ExxonMobil Moçambique, for the Area 4 partners
- Joint venture: SMDC: Saipem (leader), McDermott, Daewoo E&C, CPECC
- Initial value: USD 32 million
- Capacity: about 18.6 Mtpa, two trains, 12 modules
- Next step: EPC award subject to FID and approvals

Saipem, leading the SMDC joint venture with McDermott Energy Solutions (UK) Ltd., Daewoo Engineering & Construction Co. Ltd. and China Petroleum Engineering & Construction Corporation, signed a letter of intent with ExxonMobil Moçambique on 7 August 2026 for the midstream development of Rovuma LNG Phase 1, on behalf of the Area 4 partners ENH, CNPC, Eni, KOGAS and XRG.

The letter covers limited preliminary engineering and procurement activities for an initial value of USD 32 million. The final award of the EPC contract to the joint venture depends on a positive final investment decision by the Area 4 partners and on government and regulatory approvals, expected in 2026. SMDC had received the front-end engineering design contract in August 2024.

The onshore plant on the Afungi Peninsula comprises two LNG trains with 12 modular liquefaction modules and an expected capacity of about 18.6 million tonnes of LNG a year.

## Sources

1. [Saipem signed a Letter of Intent for Rovuma LNG onshore project in Mozambique](https://www.saipem.com/en/media/press-releases/2026-08-07/saipem-signed-letter-intent-rovuma-lng-onshore-project-mozambique). Company release, Saipem, Published 2026-08-07, Read 2026-10-23.