What is the primary role of the Saipem-Jan De Nul consortium in Mozambique LNG?

The consortium will execute crucial engineering, procurement, and construction packages, focusing on maritime facilities, dredging, and infrastructure required to support the onshore liquefaction plant and export jetty. Jan De Nul brings specialized marine engineering expertise to complement Saipem's extensive track record in LNG plant construction.

Why was the Mozambique LNG project halted in 2021?

TotalEnergies declared force majeure in April 2021 following an escalation of armed conflict and attacks by an Islamist insurgency near the Afungi construction site in Palma, Cabo Delgado. All staff and contractors were evacuated until acceptable security conditions and human rights protections could be permanently established.

When is the project expected to begin commercial LNG exports?

While an official restart date is pending the full lifting of force majeure, the timeline from operational remobilization to commissioning typically spans four to five years. If substantial construction resumes in 2024–2025, commercial LNG shipments are unlikely before 2028 or 2029.

Offshore Energy · September 11, 2026 (6h ago) · 1 min read

Saipem-Jan De Nul consortium joins Mozambique’s LNG project

Analysis

AI-assisted analysis · reviewed by Yuri Kan

Italian contractor Saipem, in alliance with offshore engineering specialist Jan De Nul, has formalized a letter of intent to secure engineering, procurement, and construction scopes for Mozambique's flagship LNG development. This milestone highlights growing international contractor readiness to remobilize for onshore and nearshore works in Cabo Delgado as regional security dynamics improve. The development signals renewed commercial momentum for TotalEnergies and partners seeking to deliver nearly 13 million metric tonnes per annum of global liquefaction capacity by the late 2020s.

Key Facts

A consortium comprising Italian contractor Saipem and Belgian offshore specialist Jan De Nul has signed a letter of intent to undertake engineering, procurement, and construction activities for Mozambique LNG.
The Mozambique LNG project, operated by TotalEnergies in the Afungi peninsula, is designed to produce roughly 12.88 million metric tonnes per annum from Area 1 deepwater offshore fields.
The project was placed under force majeure in April 2021 due to violent insurgent attacks near Palma in Cabo Delgado province.
Saipem historically held the primary onshore EPC contract for the two-train liquefaction facility via the CCS JV alongside McDermott and Chiyoda.
The introduction of Jan De Nul strengthens the consortium's marine works, dredging, and nearshore infrastructure capabilities vital for LNG export terminal logistics.
TotalEnergies and partners, including Eni and ExxonMobil (developing adjacent Area 4 assets), have conditioned the full resumption of capital expenditure on sustained regional peace, human rights guarantees, and supplier cost controls.

Background & Context

Mozambique LNG represents one of Africa's largest ever energy capital projects, backed by the discovery of over 65 trillion cubic feet of natural gas in the Rovuma Basin. Development halted abruptly in April 2021 when an ISIS-affiliated insurgency overrun Palma, compelling operator TotalEnergies to declare force majeure and evacuate all project personnel. Over the past three years, military interventions by Rwandan forces and the Southern African Development Community (SADC) mission have stabilized parts of Cabo Delgado, paving the way for gradual civil and maritime remobilization.

Market Impact

The formalized contractor engagement underscores the operator's intention to lift force majeure once final fiscal and security parameters are cleared with the Mozambican government. For global LNG markets, unlocking Mozambique’s liquefaction supply will rebalance long-term Atlantic and Indian Ocean supply corridors, directly serving both European buyers aiming to replace Russian pipeline volumes and growing Asian consumers. Furthermore, this partnership highlights how tier-one offshore contractors are adapting their consortium structures to manage marine and onshore risk execution effectively. Competing regional export facilities and global contractors face higher cost baselines given years of inflationary pressures that have impacted supply chains since initial project suspension.

What to Watch

Industry stakeholders will closely monitor TotalEnergies' anticipated formal lifting of force majeure and the subsequent issuance of a revised notice to proceed to EPC contractors. Key commercial milestones over the next 12 to 18 months include renegotiating subcontractor rates, securing revised project financing terms, and validating long-term security covenants around the Afungi perimeter. If executed according to revised schedules, first LNG exports could realistically be expected near the end of the decade.

Frequently Asked Questions

What is the primary role of the Saipem-Jan De Nul consortium in Mozambique LNG?: The consortium will execute crucial engineering, procurement, and construction packages, focusing on maritime facilities, dredging, and infrastructure required to support the onshore liquefaction plant and export jetty. Jan De Nul brings specialized marine engineering expertise to complement Saipem's extensive track record in LNG plant construction.
Why was the Mozambique LNG project halted in 2021?: TotalEnergies declared force majeure in April 2021 following an escalation of armed conflict and attacks by an Islamist insurgency near the Afungi construction site in Palma, Cabo Delgado. All staff and contractors were evacuated until acceptable security conditions and human rights protections could be permanently established.
When is the project expected to begin commercial LNG exports?: While an official restart date is pending the full lifting of force majeure, the timeline from operational remobilization to commissioning typically spans four to five years. If substantial construction resumes in 2024–2025, commercial LNG shipments are unlikely before 2028 or 2029.

Read on Offshore Energy