Indonesia’s Pertamina says Mozambique LNG deal terminated

Indonesia’s state-owned energy firm Pertamina said its 20-year LNG sale and purchase agreement with the Mozambique LNG project was terminated.

A spokesperson for Pertamina confirmed the cancellation of the contract to LNG Prime on Monday.

Pertamina’s spokesperson did not provide any additional details.

The Jakarta-based firm signed the deal back in 2019 with the Mozambique LNG JV to buy 1 mtpa of LNG for a period of 20 years.

However, French energy giant TotalEnergies and its partners in the LNG project declared force majeure on the project in April 2021 and withdrew all personnel from the site due to new attacks.

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

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.

Earlier this year, Patrick Pouyanne, CEO of TotalEnergies, said the company was “not in a hurry” to resume the project, pointing out that security, human rights, and maintaining costs are the main three elements to make the decision to return to the Afungi site in the province of Cabo Delgado.

The CEO entrusted Jean-Christophe Rufin, an expert in humanitarian action and human rights, with an independent mission to assess the humanitarian situation in the province.

In May, TotalEnergies released the report regarding the humanitarian situation.

Pouyanne said in September that TotalEnergies is still working to restart the project.

The CEO said the last condition for the company and its partners to resume the project is that the “contractors stick to their EPC contracts and not inflate the costs, otherwise we can wait longer.”

TotalEnergies hopes to start Mozambique LNG production in 2028.

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