ExxonMobil and its partners are committing about $1.1 billion to Mozambique’s planned Rovuma liquefied natural gas project before making the final decision on the estimated $30 billion investment.

ExxonMobil and its partners have committed $1.1 billion to long-lead equipment for Mozambique’s $30 billion Rovuma LNG project.The spending comes before a final investment decision, which is targeted for the end of 2026.Rovuma LNG could produce 18.6 million tonnes of LNG annually, with operations expected to start in 2031.The move signals renewed confidence despite lingering security, financing and regulatory risks in northern Mozambique.

The contracts cover equipment that can take years to manufacture, including subsea production systems, large production valves and pipes that would connect offshore gas fields to processing facilities.

ExxonMobil announced the contract awards on Monday on behalf of the Area 4 partners, which include Mozambique’s state-owned Empresa Nacional de Hidrocarbonetos, China National Petroleum Corporation, Italy’s Eni, Korea Gas Corporation and Abu Dhabi’s XRG.

Although the awards do not constitute final approval for Rovuma LNG, they represent one of the biggest financial commitments yet to a project repeatedly delayed by weak energy markets, the COVID-19 pandemic and insecurity in Mozambique’s northern Cabo Delgado province.

The project is widely estimated to cost about $30 billion, making the $1.1 billion commitment equivalent to less than 4 per cent of its expected total cost.

ExxonMobil and its partners are targeting a final investment decision before the end of 2026.

ExxonMobil and its Area 4 partners have awarded $1.1 billion in advance contracts for Mozambique’s planned Rovuma LNG project.

ExxonMobil orders equipment before final approval

Companies developing large energy projects commonly order equipment with long manufacturing and delivery periods before final approval. Waiting until after the investment decision could delay construction and push back production by several years.

The largest of the latest contracts was awarded to OneSubsea UK and OneSubsea AS for the engineering, manufacturing and fabrication of subsea production systems, controls and umbilicals.

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Aker Solutions Mozambique will support parts of the work carried out within the country.

Other contracts went to Italy’s Advanced Technology Valve for large production valves, Greece’s Corinth Pipeworks for welded pipes, Sumitomo Corporation of America for seamless pipes and China’s Zhejiang Jiuli Hi-Tech Metals for specialised pipe systems.

ExxonMobil said the advance orders would allow suppliers to begin producing materials and equipment that require extended delivery periods.

However, the company did not disclose how the $1.1 billion would be divided among the contractors or how much of the total value would remain in Mozambique.

The geographical spread of the suppliers also illustrates one of the central questions facing Mozambique as it develops its gas resources. Much of the most specialised and expensive equipment will be produced outside the country, while the government is trying to ensure that local businesses and workers receive a meaningful share of the investment.

A second major step within eight days

The new contracts follow another important decision announced on 10 August.

ExxonMobil selected the SMDC consortium, led by Italy’s Saipem, to undertake limited engineering and procurement work for the project’s onshore LNG facilities.

ExxonMobil is targeting a final investment decision on the Cabo Delgado gas project before the end of 2026.

The consortium also includes McDermott Energy Solutions, South Korea’s Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation.

Saipem separately confirmed that it had signed a letter of intent with ExxonMobil for the work. The arrangement remains limited because the main construction contract depends on the partners taking a positive investment decision.

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Taken together, the contractor selection and the $1.1 billion equipment orders show that ExxonMobil is moving beyond planning and positioning the project for construction.

That does not remove the remaining financing, security and regulatory risks.

Project could produce 18.6 million tonnes annually

Rovuma LNG is expected to process natural gas from the Mamba complex and other fields in the offshore Area 4 concession.

ExxonMobil’s revised development plan includes 12 modular liquefaction units with combined capacity to produce 18.6 million tonnes of LNG annually.

If the investment is approved on schedule, the company expects operations to begin in 2031.

The new design is larger than the earlier 15.2-million-tonne plan whose final investment decision was expected in 2020. ExxonMobil postponed that decision after the COVID-19 pandemic weakened global energy demand and forced the company to reduce spending.

Security concerns later created a more difficult investment environment.

In March 2021, armed militants attacked Palma, a town close to the Afungi peninsula where the onshore LNG facilities are planned. The assault forced TotalEnergies to suspend work on its separate $20 billion Mozambique LNG project.

ExxonMobil also paused work associated with Rovuma LNG and postponed its investment decision. The company lifted force majeure on the project in November 2025 and said it would continue working with Mozambique’s government to protect workers and facilities.

The estimated $30 billion Rovuma LNG development is expected to produce 18.6 million tonnes of liquefied natural gas annually if approved.

Mozambican and Rwandan forces have since strengthened security around strategic areas in Cabo Delgado, although militant attacks have not been completely eliminated.

The decision to place $1.1 billion in equipment orders indicates that ExxonMobil and its partners believe the security risk can be managed. It does not mean that the threat has disappeared.

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Mozambique is betting heavily on future gas revenue

Rovuma LNG is one of three major gas developments intended to turn Mozambique into an important global supplier.

Eni’s Coral South floating LNG facility began exporting gas in 2022. A second floating project, Coral North, was approved in 2025 and is expected to begin production in 2028.

TotalEnergies is also restarting work on its separate onshore project after several years of suspension.

ExxonMobil says Rovuma LNG could generate approximately $150 billion in government revenue over 30 years.

It has also cited a Standard Bank study estimating that the project could add about $11 billion annually to Mozambique’s gross domestic product and support more than 150,000 jobs.

These figures are projections based on assumptions about production, gas prices, construction, taxation and local economic activity. The eventual benefit will depend on project costs, financing terms and Mozambique’s ability to manage the revenue.

Mozambique’s national oil company holds a stake in Area 4, giving the state direct exposure to the project alongside taxes and other payments.

Abu Dhabi’s XRG also became a partner after completing its acquisition of Galp’s 10 per cent interest in Area 4 in March 2025. Galp received about $881 million at completion and could receive another $400 million if Rovuma LNG reaches a final investment decision.

That contingent payment provides another financial indication of the value attached to formal project approval.

For now, ExxonMobil has not crossed that final threshold. But by ordering $1.1 billion in equipment before approval, the company and its partners have placed their largest and clearest financial bet yet on Mozambique’s gas future.