France’s TotalEnergies is working to restart construction on its $20 billion Mozambique LNG project after declaring force majeure some two years ago due to new attacks in Cabo Delgado province.
TotalEnergies declared force majeure on the giant LNG project in April 2021 and withdrew all personnel from the site.
In February last year, TotalEnergies CEO Patrick Pouyanne said the company would not restart work on the LNG project until the civil population comes back to Cabo Delgado province where the Afungi site is located.
Pouyanne visited the province last week and met with Mozambique’s President Filipe Nyusi to discuss the security and humanitarian situation in Cabo Delgado province, according to a statement by the French energy giant.
During this visit, Pouyanne entrusted Jean-Christophe Rufin, an expert in humanitarian action and human rights, with an independent mission to assess the humanitarian situation in Cabo Delgado province, according to the statement.
This mission will also evaluate the actions taken by Mozambique LNG and will propose any additional actions to be implemented, if required, it said.
TotalEnergies said that the report of this mission will be delivered at the end of February and its conclusions will be shared with all Mozambique LNG’s partners, who shall decide whether the conditions are met for resuming project activities.
Situation improved “significantly”
“Since 2021, the situation in Cabo Delgado province has improved significantly, thanks in particular to the support provided by the African countries that committed themselves to restore peace and security,” Pouyanne said in the statement.
“The lifting of the force majeure and the resumption of activities at the Mozambique LNG project site require, in particular the restoration of security in the region, the resumption of public services and the return to normal life for the people of the region,” he said.
TotalEnergies had previously planned to launch the project in 2024. Mozambique LNG includes the development of offshore gas fields in Mozambique’s Area 1 and a 13.1 mtpa liquefaction plant at the Afungi complex.
The project will also have a fleet of dedicated LNG carriers.
Besides TotalEnergies, other partners in the project are Japan’s Mitsui, Mozambique’s ENH, Thailand’s PTT, and Indian firms ONGC, Bharat Petroleum, and Oil India.
The project’s EPC contractor is CCS JV, a venture between Saipem, McDermott, and Chiyoda.
Mozambique LNG is the first onshore LNG plant in the country.
The country became an LNG exporter in November last year after Eni’s Coral Sul FLNG located offshore Mozambique shipped its first cargo of LNG.