French-based TotalEnergies has further delayed its $20 billion liquefied natural gas (LNG) project in Mozambique. The main reason for this is because of the ongoing security concerns, as reported by the Financial Times. The LNG project in the restive Cabo Delgado province has been on hold since 2021. One of the main reasons for this is when an Islamist insurgency threatened the site. Many of the civilians lost their lives in the attacks in a nearby town. These events forced TotalEnergies to declare a force majeure and withdraw all its staff from the construction site. However, the company noted that plans to restart the project by the end of 2024 were also not successful. This is after the violence that followed October’s disputed presidential election. These delays have proven to be detrimental as they put at risk TotalEnergies’ goal to begin production in 2029.
Also read:
Angola gears up for $6-billion offshore oil project, TotalEnergies
The Significance of the Mozambique LNG Project
The Mozambique LNG project is expected to be of immense significance once fully commissioned, despite the challenges it faces. The government of Mozambique is committed to ensuring that the plans laid out for the project are implemented. However, this has not been the case since the discovery of the vast natural gas reserve in 2010. Mozambique aims to utilize the 65 trillion cubic feet of recoverable natural gas by constructing two liquefaction units. Each has a capacity of 13 million tons per year (MTPA) with an expansion capacity of 43 million tons annually.
Once completed, the project’s strategic location positions it to respond to diverse markets. Located off the north coast of Mozambique, it can serve the needs of the Atlantic and Asia-Pacific markets. Moreover, it will also facilitate addressing the growing energy demands of the Middle East and Indian subcontinents. The Mozambique LNG project is also expected to provide Mozambicans with professional training, employment, and a source of income. However, despite the challenges, TotalEnergies still remains hopeful in delivering the project as they seek to lift the force majeure.
Also read:
TotalEnergies Anticipated to Commission Libya’s 500 MW Sadada Project in 2025
TotalEnergies Interested in $750M Gas Project in Nigeria to Boost LNG Supplies
