Total CEO says giant Mozambique LNG project on track

Total’s $20 billion Mozambique LNG project is still on track despite security concerns in the region, according to chief executive Patrick Pouyanne.

The French firm said in early January it had decided to reduce the number of personnel working at the Afungi LNG site due to “security reasons” after an attack in a village near the site.

Pouyanne said during a live webcast of Total’s results and strategy on Tuesday the project had reached a 21 percent completion at the end of last year.

“We face clearly some security issues, as you know, it’s public, and we are working with the Mozambique government. It does not have, at this stage, impact on the planning of the project, which we’ll deliver by 2024,” the CEO said.

He added that works are still mainly in the “engineering phase, a logistical phase, and the offshore works have been maintained.”

“But obviously, the situation on the ground will need to be controlled. And we have a clear plan, securing an area of at least 25-kilometer around the project itself in order to be able to resume the work, which is our intent,” Pouyanne said.

“But my highest priority is security, not only of our staff but also the staff of our partners who work onshore in Mozambique,” he said.

Onshore works restart

In addition, Puyanne said that onshore works could restart by the end of the first quarter.

“I mean to be clear, we all agreed when we met with the government, that the sooner is better, and that we want to remobilize,” he said.

“So if the armed forces and the police are able to recontrol the area that we agree together, I think at the end of the first quarter – we should be able to restart the work,” he said.

“What is very important to us is that we want to be sure that when we remobilize people, we can really engage in a sustainable work there. And we don’t want to reengage and then to stop again,” he said.

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

The project includes the development of offshore gas fields in Mozambique’s Area 1 and a 12.8 mtpa liquefaction plant at the Afungi complex in Palma in northern Mozambique.

Moreover, the project will also 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.

Most Popular

Venture Global’s Plaquemines LNG to commission fourth tank

US LNG exporter Venture Global LNG has received approval from the US FERC to commission the fourth storage tank with LNG at its Plaquemines plant in Louisiana.

Worley gets full notice to proceed on first phase of CP2 LNG project

Australian engineering firm Worley has received a full notice to proceed from US LNG exporter Venture Global LNG under its reimbursable EPC contract for the first phase of the CP2 LNG project in Louisiana.

US FERC issues final SEIS for NextDecade’s Rio Grande LNG project

The US Federal Energy Regulatory Commission (FERC) has released a final supplemental environmental impact statement for NextDecade's Rio Grande LNG facility and the accompanying pipeline in Texas. FERC continues to conclude that approval of the projects would result in "less than significant impacts."

More News Like This

TotalEnergies working on Mozambique LNG restart, CEO says

France's TotalEnergies and its partners in the giant Mozambique LNG project are still working with the Mozambique government on restarting construction on the 12.8 mtpa project, according to Patrick Pouyanne, CEO of TotalEnergies.

TotalEnergies reports higher LNG sales, lower earnings

French energy giant TotalEnergies reported higher LNG sales in the second quarter of this year, while its integrated LNG business logged lower adjusted net operating income due to lower prices.

TotalEnergies, CMA CGM to launch LNG bunkering JV

French energy giant TotalEnergies and compatriot shipping firm CMA CGM have signed a deal to develop a 50/50 logistics joint venture dedicated to the implementation and operation of an LNG bunkering supply solution at the Dutch port of Rotterdam.

TotalEnergies: average LNG price down in Q2

French energy giant TotalEnergies, one of the world’s largest LNG players, reported a year-on-year drop in its average price for equity liquefied natural gas sales in the second quarter of this year.