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Mozambique LNG: Saipem Signals Restart

Saipem has confirmed a phased restart of the Mozambique LNG project this summer, signalling new opportunities for logistics, construction, and service companies as site activity ramps up at the Afungi plant.

Speaking during Saipem’s half-year results call on 24 July 2025, CEO Alessandro Puliti confirmed that the long-paused Mozambique LNG project is set to resume activity this summer. Saipem expects a phased lifting of force majeure conditions and progressive remobilisation at the Afungi site in northern Mozambique.

This announcement marks a significant milestone in one of Africa’s largest energy developments—one that has remained on hold since 2021 following regional instability in Cabo Delgado.

Project Scope: A Mega LNG Development in Mozambique

According to the Mozambique LNG official website, the project is based on more than 65 trillion cubic feet of recoverable natural gas from Area 1 of the Rovuma Basin, offshore northern Mozambique.

The project involves:

  • Two LNG trains with a combined liquefaction capacity of 13.1 million tonnes per annum (mtpa)

  • A large-scale onshore gas liquefaction facility

  • Gas treatment and condensate stabilisation

  • Onsite storage tanks

  • A dedicated marine terminal and export jetty

  • Support infrastructure including access roads, accommodation, utilities, and social infrastructure

The project also includes the construction of a resettlement village, in line with international standards and in coordination with local communities.

Saipem is a key member of the EPC consortium alongside McDermott and Chiyoda, responsible for the full engineering, procurement, and construction scope of the onshore LNG facilities.

What This Means for Suppliers and Service Providers

The expected restart offers a clear signal to companies in the EPC value chain that mobilisation is back on the table. While exact dates remain subject to operator direction, the movement of personnel and materials—particularly via maritime routes—means the door is opening for:

  • Marine logistics providers, barge and tug operators

  • Heavy equipment and camp infrastructure suppliers

  • Temporary works and site services contractors

  • Technical staffing and manpower firms

With the project restarting under the watch of a major EPC player and one of the world’s largest energy operators, the opportunity for suppliers to re-engage is now. Early coordination with Tier 1 contractors could secure scope in areas like site reactivation, logistics, camp expansion, and local service mobilisation.

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