Mozambique’s Gas Giant Steps Forward: $1.1bn Contracts Signal Rovuma LNG Revival

In the coastal province of Cabo Delgado, where the Indian Ocean meets gas-rich waters, a long-delayed dream is stirring back to life. ExxonMobil and its Area 4 partners have awarded approximately $1.1 billion in pre-investment contracts for critical upstream equipment, marking the clearest signal yet that Mozambique’s Rovuma LNG Phase 1 is moving toward a final investment decision.

The contracts, announced this week, cover subsea production systems, large-bore valves and offshore line pipe — the long-lead items that can bottleneck any mega-project. The largest award went to OneSubsea for engineering, procurement and manufacturing of subsea systems, with Aker Solutions Mozambique supporting local work. Additional contracts went to Advanced Technology Valve, Corinth Pipeworks, Sumitomo and Zhejiang Jiuli Hi-Tech Metals.

ExxonMobil Moçambique, acting on behalf of partners that include Mozambique’s ENH, China’s CNPC, Italy’s Eni, Korea’s KOGAS and Abu Dhabi’s XRG, framed the awards as a “significant milestone.” By securing equipment early, the consortium is positioning the project for efficient execution once the green light is given. The onshore LNG plant is designed to produce around 18.6 million tonnes per annum, with potential revenues of roughly $150 billion to the Mozambican state over a 30-year life.

The project’s history is not without shadows. Force majeure was declared in 2021 after security challenges in Cabo Delgado, and work remained paused for years. The lifting of that force majeure last November, followed by these substantial contracts, reflects both improved security conditions and a broader global hunger for diversified LNG supply. With Middle East tensions adding uncertainty to traditional routes, Mozambique’s vast offshore reserves have regained strategic appeal.

For Mozambique, the stakes are immense. Standard Bank studies have projected the project could add around $11 billion annually to GDP at peak and support more than 150,000 jobs. Local content requirements mean Mozambican companies and workers stand to benefit from fabrication, logistics and services. The early contracts already include in-country support, a deliberate signal that development will not bypass local capacity.

Of course, FID has not yet been taken, and security remains a careful watchpoint. Yet the scale of the awards — more than a billion dollars committed before final approval — speaks volumes about the partners’ confidence. In a continent hungry for large-scale energy projects that deliver both export revenue and domestic economic multipliers, Rovuma LNG is once again a story of possibility rather than delay.

As the contracts move into manufacturing and early site work, the people of Cabo Delgado and the wider nation will be watching closely. A successful project would not only transform Mozambique’s fiscal outlook but also demonstrate that Africa’s resource wealth, when carefully developed, can fund lasting national prosperity. This $1.1 billion step is not the finish line, but it is the most convincing stride the project has taken in years.