Saipem CFO expects Mozambique LNG work to resume next year

Italian contractor Saipem expects work on the giant $20 billion Mozambique LNG project to resume around mid-2022, according to its finance chief Antonio Paccioretti.

To remind, TotalEnergies declared force majeure on the LNG project earlier this year following new attacks near the Afungi plant site.

The project’s EPC contractor is CCS JV, a venture between Saipem, McDermott, and Chiyoda.

Paccioretti told analysts during a conference call last week that in order to reach the company’s revenues target next year “we also have to consider the contribution of Mozambique.”

As of September 30, the giant LNG project remains in Saipem’s backlog for an amount of about 3.6 billion euros ($4.15 billion), he said.

TotalEnergies said in April this year the Mozambique LNG project would be delayed for “at least one year.”

The energy giant had previously expected to launch the project in 2024. Mozambique LNG includes the development of offshore gas fields in Mozambique’s Area 1 and a 12.8 mtpa liquefaction plant at the Afungi complex.

Also, the project will have a fleet of dedicated LNG carriers.

Besides Total, other partners in the project are Japan’s Mitsui, Mozambique’s ENH, Thailand’s PTT, and Indian firms ONGC, Bharat Petroleum, and Oil India.

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