Total energies preparing to resume LNG project in Cabo Delgado

Maputo, 7Jul (AIM) – The French oil and gas company, Total Energies, which heads the Mozambique LNG Project, located on the Afungi peninsula, in Palma district, in the northern province of Cabo Delgado, has started preparing to resume work on the project budgeted at around 20 billion dollars after it was forced to halt operations in 2021 following a major terrorist attack against Palma town.

According to the Bloomberg agency, citing sources involved in the project, known simply as “Mozambique LNG”, Total Energies sent a letter last week along with “a so-called notice to proceed with site preparation to companies including Portuguese builder Mota-Engil SGPS SA, which won a $365 million contract with Belgian construction firm Besix Group SA in 2020 to build marine facilities for the project. Discussions have started between contractors and sub-contractors about returning.”

According to sources who asked not to be identified because the information is still confidential, firms have taken preliminary steps, including deploying resources to the project site. However, a Total representative declined to comment.
Mozambican President Daniel Chapo earlier in the week said his government and private companies will have to collectively ensure the necessary security is in place to enable the restart.

The Mozambique LNG Project began with the discovery of over 65 trillion cubic feet of natural gas in the Rovuma Basin, which led TotalEnergies and its partners to take a Final Investment Decision in 2019.

The project includes two gas liquefaction units to be built on the Afungi Peninsula, with an expansion capacity of up to 43 million tonnes of LNG per year.
(AIM)
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