Exxon orders to Greece 250 km of gas pipes in Mozambique

A award was made by the partners of Area 4, led by ExxonMobil Mozambique, as a delegate operator of the Rovuma LNG Phase 1 project, announced the Greek company, in a statement.

The contract has an estimated value of between 200 million and 250 million dollars (172 million and 215 million euros) and provides for the manufacture of approximately 250 kilometres of longitudinally submerged arc welded steel pipes (LSAW), equivalent to about 120 thousand tonnes, intended for the offshore pipeline network of the Liquefied Natural Gas (LNG) extraction and production undertaking.

The supply includes tubes with diameters between 20 and 24 inches, as well as anti-corrosion and concrete coatings needed for installation and operation in deep water in the Rovuma basin, Cabo Delgado.

According to the Greek company, all production will be carried out in the industrial unit of Thisvi, Greece, and then sent to Mozambique. Corinth Pipeworks points out that pipes will have to meet the demanding conditions associated with the production of natural gas in deep sea, adding that the contract reinforces the international presence of the company in the offshore energy infrastructure segment.

The award comes a few days after ExxonMobil announces pre-investment contracts valued at USD 1.1 billion (EUR 947 million) for the purchase and manufacture of critical equipment for Rovuma LNG, in an indication that partners are accelerating preparations for the final investment decision (FID).

At the time, the US oil company explained that the contracts covered engineering, acquisition and manufacturing services of underwater production systems, large diameter production valves and offshore pipelines.

The director-general and chairman of ExxonMobil’s board of directors in Mozambique, Johanna Boothey, then considered that the award of these contracts represented “an additional important step towards the advancement of the Rovuma LNG project” and reflected “the strong commitment of the partners of Area 4 to the responsible development of Mozambique’s world-class natural gas resources.”.

The announcement from Corinth Pipeworks also follows the selection by ExxonMobil of the SMDC consortium, integrated by the companies Saipem, McDermott Energy Solutions, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation, to perform the engineering, acquisition and construction services of the first phase of ground development.

The Rovuma LNG project is led by ExxonMobil, as a delegate operator of Area 4, in partnership with the National Hydrocarbon Company (ENH), CNPC, ENI, KOGAS and XRG.

In an interview with Lusa in July, Mozambican President Daniel Chapo expressed the expectation that the final investment decision would be made by September, classifying the Rovuma LNG as “the largest private investment project on the African continent”, valued at around 20 billion dollars (17,2 billion euros).

The development provides for the construction of 12 liquefaction modules, with combined capacity to produce 18.6 million tonnes of LNG per year, with operational start-up pointed at 2031.

ExxonMobil lifted in November the statement of force majeure that had suspended the project since the 2021 armed attacks in Cabo Delgado.

Mozambique has approved three major projects to exploit the vast natural gas reserves of the Rovuma basin, considered among the largest in the world.

In addition to Rovuma LNG, TotalEnergies plans to start exports from Area 1 in 2029, while Italian Eni has been producing since 2022 through the Southern Coral floating platform and plans to expand production from 2028 to the North Coral.