TotalEnergies CEO Patrick Pouyanne met with Mozambique’s president to discuss way forward on the $20 billion Mozambique LNG project. The meeting comes at a time when the commencement of the project is imminent. Recently, President Chapo called on the oil company to resume work on the project. Patrick Pouyanne previously admitted the possibility of resuming the project by August. Furthermore, several contractors have recently been receiving instructions to prepare to recommence work on the Afungi Peninsula in Cabo Delgado.
The project is located far north of Mozambique, which was suspended four years ago. Furthermore, TotalEnergies is currently developing a plant near Palma that will facilitate for the production and export of LNG. The multinational has a 26.5% stake in this project, primarily aimed at clients in Asia. On the other hand, Mozambican partners and Japan’s Mitsui own 20% of the project’s stake. Mozambique’s president noted that ““If the ‘force majeure’ clause is lifted, we will move forward with the project,” which anticipates an annual production capacity of 13.12 million tons of LNG.
Also read:
Mozambique LNG, the first onshore LNG facility in the southern African country
Scope on Total Energies’ Mozambique LNG Project
The scope of implementation on TotalEnergies’ Mozambique LNG project is one that is focused in expediting the project. The company has already announced plans to resume its LNG megaproject in northern Mozambique this year. Furthermore, with financing needs virtually assured and the area’s security situation secure, everything is on track. Mozambique has three approved development projects to exploit the Rovuma Basin natural gas reserves off the coast of Cabo Delgado. These reserves are ranked among the largest in the world.
Since October 2017, the gas-rich province of Cabo Delgado has faced an armed rebellion. The attacks have been claimed by movements associated with the extremist group Islamic State, which have displaced more than one million people. “The most important thing at this moment with TotalEnergies is the lifting of the ‘force majeure’ clause,” Mozambique’s president noted. He also noted that no matter how much a development plan is signed, without the lifting of the ‘force majeure’ clause, nothing will be done.
Also read:
Construction of the $20 Billion Mozambique LNG Project to Resume by Mid-Year
TotalEnergies Delays $20 Billion Mozambique LNG Project Once Again
