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

MAN will no longer offer ME-GA engine

Volkswagen’s MAN unveiled the ME-GA dual-fuel engine in March 2021, describing it as an Otto-cycle variant of the company’s...

Kumul awards pre-FEED contract to Wison for Papua New Guinea’s first FLNG

The two firms signed the contract on Friday. With an expected capacity of 1.5 mtpa, Papua New Guinea’s first FLNG...

Atlantic LNG shipping rates dip to $26,750 per day

Last week, Atlantic LNG shipping rates dropped below $50,000 per day. “Spark30S Atlantic rates dropped for a fourth consecutive week,...

More News Like This

TotalEnergies expects Q3 LNG results to be above $1 billion

"Integrated LNG results are expected to be above $1 billion, in a context of low market volatility and a...

TotalEnergies confirms Ibaizabal charter deal for LNG bunkering newbuild

TotalEnergies announced the contract in a statement on Thursday. China's Hudong–Zhonghua will build the new vessel and deliver it by the...

Adani, TotalEnergies launch LNG station in India

Adani Total Gas (ATGL), a JV between the two firms, announced the launch of the first LNG station in...

TotalEnergies to supply two more LNG cargoes to Bulgargaz

Bulgargaz recently launched three tenders for the delivery of five cargoes during the upcoming autumn-winter season. The company previously awarded the October...