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McDermott secures FEED contract in Mozambique

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McDermott, through a consortium with Saipem and China Petroleum Engineering and Construction Corporation, has been awarded a front-end engineering design (FEED) contract for the Rovuma LNG Phase 1 project in Mozambique, it said on September 30.

The Rovuma LNG project will include an LNG plant with a production capacity of 18mn tonnes/year, made up of 12 fully modularised LNG trains, each capable of producing 1.5mn tonnes/year. MRV is a joint venture of ExxonMobil, Eni, and CNPC.

The project includes liquefaction and export of natural gas extracted from the Offshore Area 4 fields off the Afungi Peninsula in Mozambique.

The FEED contract scope of work includes the modular design of a greenfield LNG production facility in Afungi, all associated gas pre-treatment units and the utilities and offsite systems to support the LNG production.

Rovuma LNG is expected to strengthen Mozambique’s position as an energy-producing nation, a role already highlighted by the recent start-up of the Coral South project. Mozambique shipped its first LNG cargo in November 2022, with Eni’s Coral Sul FLNG offering a liquefaction capacity of 3.4mn tonnes/year. 

Related Knowledge Center: Climate economics

State of Play

Climate change is now a driver of the world’s economy. The impact is profound:

  • Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
  • Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
  • Investment in carbon capture and storage technologies is increasingly rapidly.
  • Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases. 

On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”

More informationabout Climate economics