News flash
- TotalEnergies CEO Patrick Pouyanne told investors in New York that the company and its partners are poised to restart construction at the mega Alfungi liquified natural gas (LNG) site.
- The US$ 20 billIon project has been under force majeure since April 2021 after insurgent attacks which came close to the site. Read more
Pouyanne said that the project’s owners and the Mozambique government still need to approve an updated development plan and budget to account for the impact of the force majeure, which remains in place.
“That is currently being assessed, and we’ll move, I think, very quickly. Everything is ready, in fact we are remobilising on the ground. We should start operations in 2029,” said Pouyanne.
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
