- Project suspended since April 2021 due to insurgent attacks
- Project Director states that preparations for resumption are underway, but no exact date has been set
By Noémia Mendes
Maputo (MOZTIMES) – The Director of the Mozambique LNG Project, Mazime Rabilloud, stated on Thursday in the city of Pemba that the project remains active and is currently focused on preservation and preparation activities for the resumption of operations. However, he did not specify a date for lifting the force majeure clause.
In recent days, several media outlets have reported that the Mozambique LNG Project, operated by TotalEnergies, was suspending contracts with subcontracted companies in the Afungi area, in Palma district. This information was interpreted as a sign that the resumption of the project, which aims to exploit liquefied natural gas in Area 1 of the Rovuma Basin, off the coast of Cabo Delgado province, is still far from happening.
Mazime Rabilloud clarified that the project is active and preparing for its restart. "We are carrying out many preservation jobs and preparatory activities for a restart," Rabilloud told journalists.
The project was suspended in April 2021 due to "force majeure" following jihadist attacks against Palma town, near the site where construction works for the liquefied natural gas processing plant were taking place, on the Afungi Peninsula.
Rabilloud stated that there is no set date for the resumption of liquefied natural gas exploitation activities. In addition to the security concerns that led to the declaration of "force majeure" and the subsequent suspension of the project, there are also financial issues, as some export banks that had committed to financing the project with around 16 billion dollars—out of the 20 billion required—have yet to confirm their support.
Since 2020, there were multiple instances where it was believed that the Mozambique LNG Project would resume operations. On several occasions, the former president, Filipe Nyusi, hinted at supposed improvements in security conditions in Cabo Delgado, yet the project remained on hold. Even the presence of thousands of Rwandan troops in the area did not lead to the lifting of the "force majeure" clause that justified the project's suspension.
The Mozambique LNG Project began in 2011, following the discovery of large natural gas reserves off the northern coast of Palma district, and the final investment decision of USD 23 billion was announced in 2018 in Maputo, when the project was still operated by the American company Anadarko. The following year, in 2019, the project was sold to TotalEnergies, which suspended activities two years later due to the jihadist attack in Palma.
In addition to TotalEnergies, which holds a 26.5% stake, the other shareholders of Mozambique LNG are Mozambique's own National Hydrocarbon Company (ENH) with 15%; Mitsui & Co of Japan, with 20%; the Indian companies ONGC Videsh, Oil India and Bharat PetroResources, with 10% each; and PTTEP of Thailand with 8.5%. (NM)
