The Mozambique LNG project should resume operation “this summer”, the chief executive of the facility’s operator, TotalEnergies, told media this week.
The Mozambique LNG project—which is under construction—suspended activities in 2021 under force majeure conditions caused by violence from rebel groups in the area. With a price tag of $20 billion, Mozambique LNG will liquefy gas from two offshore fields, Golfinho and Atum, with an annual processing capacity of 13.12 million tons. It is the biggest liquefied natural gas project in Africa and the biggest foreign investment on the continent as well. TotalEnergies is operator with 26%, in partnership with Japan’s Mitsui & Co, Thailand’s PTTEP, and Mozambique’s state energy firm ENH.
Northern Mozambique has been struggling to contain an Islamist insurgency. Now, the situation is improving with the help of the Rwandan authorities—and Rwandan troops, financed by the European Union, which has the most interest in the project restarting as a major gas importer that is now trying to completely give up Russian energy, including gas.
In addition to the insurgence that has threatened the Mozambique LNG project, there is strong environmentalist opposition to the facility, with even governments getting involved. First, at the end of last year, the French supermajor tried and failed to convince the outgoing Biden administration to release some $5 billion in state loans for Mozambique LNG. Then, early this year, the Starmer government in the UK was reported to be seeking ways to get out of an obligation to supply some of the funds for the project, in line with its total-transition policies.
With all these obstacles, Total has so far delayed the start date for the facility twice, first to 2027 and more recently to 2029. If Patrick Pouyanne’s optimism about this summer is justified, the company might not need to issue any more delays to the project.
By Irina Slav for Oilprice.com
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