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

TotalEnergies to transfer Papua LNG operatorship to ExxonMobil

French energy giant TotalEnergies said on Monday that Papua LNG has achieved "major" contractual and commercial milestones, marking "decisive" steps towards a final investment decision. These include completing the EPC tendering process and transferring Papua LNG operatorship to US energy giant ExxonMobil, operator of the PNG LNG project.

Arctic LNG 2 seeks $1 billion from Hanwha Ocean over terminated LNG carrier orders

Novatek-led Arctic LNG 2 is seeking approximately $1 billion in damages from South Korean shipbuilder Hanwha Ocean over terminated shipbuilding contracts for Arc7 ice-class LNG tankers.

Gasunie, Vopak plan fifth Gate LNG jetty

Dutch partners Gasunie and Vopak plan to build a fifth liquefied natural gas (LNG) jetty at their Gate terminal in the port of Rotterdam.

More News Like This

TotalEnergies to transfer Papua LNG operatorship to ExxonMobil

French energy giant TotalEnergies said on Monday that Papua LNG has achieved "major" contractual and commercial milestones, marking "decisive" steps towards a final investment decision. These include completing the EPC tendering process and transferring Papua LNG operatorship to US energy giant ExxonMobil, operator of the PNG LNG project.

TotalEnergies appoints Guegan to its executive committee

French energy giant and LNG player TotalEnergies has appointed Emmanuelle Guegan as the president of marketing and services and a member of the executive committee after Bernard Pinatel decided to retire.

Ibaizabal, TotalEnergies to take delivery of LNG bunkering vessel in China

China’s Hudong-Zhonghua is expected to soon deliver the first of two 18,600-cbm LNG bunkering vessels it built for Spanish shipowner Ibaizabal and French energy giant TotalEnergies.

TotalEnergies, partners seal Papua LNG deal with Papua New Guinea

France’s TotalEnergies and its partners in the Papua LNG export project have signed amendments to the project's gas agreement with the government of Papua New Guinea, paving the way for a final investment decision by the end of the year.