Total resumes Mozambique LNG onshore work

Total has resumed onshore construction activities at its $20 billion Mozambique LNG project following the implementation of additional site security measures at the Afungi site.

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

After that, chief executive Patrick Pouyanne said during a live webcast of Total’s results and strategy that onshore activities could restart by the end of the first quarter.

“The Mozambique LNG project operated by Total E&P Mozambique Area 1, and the government of Mozambique, announce that the project will progressively resume construction activities at the Afungi site, following the implementation of additional site security measures,” the firm said on Wednesday.

The government of Mozambique has declared the area within a 25 km perimeter surrounding the Mozambique LNG project as a special security area, Total said.

In addition, the firm said control of the 25 km zone remains ensured exclusively by Mozambique’s public security forces.

Mozambique LNG first debt drawdown

Total also said that Mozambique LNG has satisfied all the conditions for the first debt drawdown of the project financing signed in July last year.

Total signed a $14.9 billion senior debt financing deal with eight export credit agencies, 19 commercial banks, and the African Development Bank.

This first drawdown will take place at the beginning of April, Total said.

Moreover, Total also confirmed its objective to deliver Mozambique LNG’s first cargoes in 2024.

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.

Mozambique LNG 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.

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