Mozambique Government Working Hard to Resume TotalEnergies LNG Project in Alfungi

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  • A verification team is working in Cabo Delgado with a view to ascertaining the necessary safety conditions for the resumption of the TotalEnergies-led Rovuma Basin liquified natural  gas project.
  • TotalEnergies called force majeur in April 2021 after insurgent attacks came close to their compound in Alfungi, Palma District in the provence of Cabo Delgado. Read more 

The guarantee was given on Thursday by Minister of Mineral Resources and Energy, Carlos Zacarias, who added that the government wanted to see operations resume as soon as possible.

“The security situation in the area where the TotalEnergies and ExxonMobil projects will be implemented has, in our view, improved a lot. Naturally, before resuming activities, there will be a lot of scrutiny on the part of the companies carrying out the investments,” Minister Zacarias said in Vilankulo district, Inhambane province.

The minister was in Inhambane province to monitor the government’s Five Year Program (PQG), specifically in the area of oil and gas, energy and mines.

Carlos Zacarias said that, although the government considered that the conditions for the resumption of the project were improving, it was up to the company to verify if, from its point of view ,the environment to recommence activities was in place.

The restoration of security in the district of Palma has permitted the return of some of the residents and the resumption of some economic activities.

According to Minister Zacarias, in the same way that the population was gradually returning following the improvement of security conditions, economic enterprises could also do so.

The minister noted that it was not just the TotaEnergies project that had been suspended, but also many others, such as the roads under construction in various locations.

In April last year, the multinational Total announced the withdrawal of all personnel from its LNG project in Afungi.

The Mozambique LNG offshore project, valued at around US$20 billion, aims to extract about 13.12 million tonnes of recoverable gas over 25 years and generate profits of US$60.8 billion, half of which will go to the Mozambican state.

Total E&P Mozambique Area 1 Limited, a wholly-owned subsidiary of Total SE, operates the Mozambique LNG project, with a 26.5% equity interest, together with ENH Rovuma Area 1, S.A. (15%), Mitsui E&P Mozambique Area 1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).

Author: Bryan Groenendaal

Source: AIM


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