LNG

TotalEnergies, the French developer of the onshore Mozambique LNG export project, said the security situation in the southeast African country was improving, opening the way for the future re-start of the venture.

The security situation has been helped by the deployment of peace-keeping forces from Rwanda and other security personnel to tackle Islamic insurgents.

The chief executives of TotalEnergies and the other LNG project lead-developer in Mozambique, Eni of Italy, had recently visited the east African state of Rwanda and thanked the government for its Mozambican peace-keeping efforts.

TotalEnergies declared “force majeure” on the venture in April 2021 over the growing conflict in Mozambique's northern Cabo Delgado province.

The French major had already reduced the workforce to a bare minimum at the liquefaction plant site on the Afungi Peninsula, near the port of Pemba.

This followed a flare up at the end of March 2021 in the fighting in the region linked to an Islamist insurgency near the border with Tanzania.

“We are looking at the situation and, the steps taken by the Mozambican government are going in the right direction,” said Henri-Max Ndong Nzue, the TotalEnergies Senior Vice President for Africa.

Improvements

“Things are improving by what we can see on the ground. The African forces are doing quite a good job,” he added.

The instability has already pushed back the start of first production to at least 2025 from 2024, with full output of just over 13 million tonnes per annum expected in 2026.

TotalEnergies has continually expressed its “solidarity” with the government and people of Mozambique in being able to end the violence and restore security and stability in Cabo Delgado province in the longer term.

The Total-led project includes the development of the Golfinho and Atum gas fields located within offshore Area 1 of Mozambique’s Rovuma Basin.

The liquefaction plant site had already been cleared for construction when Total acquired it from Occidental Petroleum in an almost $4 billion deal in November 2019 for a 26.5 percent operated interest previously held by Anadarko Petroleum.

Total had initially planned to build two liquefaction Trains, each with capacity of 6.45 million tonnes power annum, and with the possibility of up to two additional Trains and overall output of 25 MTPA.

The Rovuma Basin Area 1 licence has estimated resources of more than 60 trillion cubic feet of gas resources of which 36 Tcf could be developed for a four-Train plant.

The Area 1 shareholders in addition to Total include Mozambican state-owned energy company ENH with 15 percent and five other companies

They are Japan’s Mitsui & Co. with a 20 percent stake, three Indian companies, ONGC Videsh, Bharat PetroResources and Beas Rovuma Energy each holding 10 percent and Thailand’s PTTEP with 8.5 percent.