The SMDC joint venture, in which Daewoo E&C participates, has been selected as the midstream EPC (Engineering, Procurement and Construction) contractor for the Rovuma LNG Phase 1 project, a massive liquefied natural gas (LNG) development in Mozambique. The project has a production capacity of 18.6 million tonnes of LNG per year, and Korea Gas Corporation reportedly holds a 10% ownership stake in the project.
Daewoo E&C announced on August 5 that it had officially received a Letter of Intent (LOI) from ExxonMobil Mozambique, the lead company representing the Rovuma LNG Phase 1 project sponsors, to carry out pre-FEED design, procurement and constructability review work. Daewoo E&C is reported to participate as the main contractor through the SMDC joint venture, formed together with Italy’s Saipem, the United States’ McDermott, and China Petroleum Engineering & Construction Corporation (CPECC). The LOI is intended to advance detailed design, procure key equipment, and conduct constructability reviews ahead of full-scale construction, which is expected to follow a Final Investment Decision (FID). ExxonMobil Mozambique plans to complete the FID by the end of this year and proceed to signing the full EPC contract and beginning construction, it is reported. The project is being developed as an e-driven (electric-driven) LNG liquefaction plant, which will also include a large-scale combined-cycle gas power plant to supply electricity, along with other supporting facilities, according to reports.