TotalEnergies plans to restart construction at US$20-billion liquefied natural gas site in Mozambique

• Reuters reports that TotalEnergies Chief Executive, Patrick Pouyanne, will seek Mozambique government approval to lift a force majeure declaration on its US$20-billion liquefied natural gas (LNG) and resume plant construction by mid-summer. 

The French energy giant declared force majeure in April 2021 after deadly insurgent attacks in the Cabo Delgado province which came perilously close to the Alfungi plant construction site. At the time, TotalEnergies cancelled all contracts for the project. Read more 

TotalEnergies has expressed its solidarity with the government and people of Mozambique and wished that the actions carried out by the government of Mozambique and its regional and international partners will enable the restoration of security and stability in Cabo Delgado province in a sustained manner.

Related news: Total evacuates Alfungi site amid ongoing terror attacks in the region

Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of Total SE, operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 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%).

The U.S. Export-Import Bank, under the new Trump administration, recently re-approved a $4.7billion loan for the project. 40% of the contracts have been awarded to US companies for plant construction and extraction. Almost 80% of the US$14 billion needed for the mega gas project have been confirmed. Loan approvals are still pending from export credit agencies in the UK and the Netherlands.

The ‘alliance’ that Mozambique has with Rwanda, has ensured security in the area where the project is located on the Afungi peninsula. Rwandan forces have been deployed in the area since July 2021. However, insurgent attacks are still ongoing in Cabo Delgado province. Read more 

Author: Bryan Groenendaal