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View of the site for the Rovuma liquefied natural gas (LNG) development project in Mozambique. / Daewoo E&C

Daewoo Engineering & Construction (Daewoo E&C), participating in the global joint venture SMDC JV, has been selected as the EPC (engineering, procurement, and construction) contractor for a mega liquefied natural gas (LNG) development project in Mozambique.

Daewoo E&C announced on the 7th that SMDC JV, in which it participates as a lead contractor, has been selected as the contract counterparty for the midstream EPC portion of the "Rovuma LNG Phase 1" project in Mozambique, and has formally received a letter of intent (LOI) to carry out preliminary design, procurement, and constructability review work.

SMDC JV is a global EPC consortium comprising Daewoo E&C along with Italy's Saipem, U.S.-based McDermott, and China's CPECC. Daewoo E&C has been advancing the project together with these partners as a lead contractor.

The LOI received covers preliminary work ahead of the project's final investment decision (FID), including advancing initial design, procuring major equipment, and conducting constructability reviews to prepare for the start of main construction.

The project's operator, ExxonMobil Mozambique Limitada, plans to complete the FID by the end of this year, sign the formal EPC contract, and begin full-scale construction. Accordingly, the final project cost and the scale of Daewoo E&C's contract are expected to be confirmed after the FID.

The Rovuma LNG Phase 1 project involves building liquefaction facilities capable of producing 18.6 million tons of LNG annually, along with a large combined-cycle gas power plant to support an electric motor-driven (e-driven) liquefaction process and related auxiliary facilities. The plant is designed as an eco-friendly LNG liquefaction facility that uses electric motors instead of conventional gas turbines.

A Daewoo E&C official said receiving this LOI shows that the company has moved beyond the subcontractor role that Korean construction firms have traditionally been confined to, and has been recognized for its ability to lead projects alongside the world's top-tier EPC players, demonstrating its technical credibility and construction capabilities in the global LNG liquefaction plant market.

                                                                                                          Jeon Won-jun