TotalEnergies has officially postponed the start date of the Mozambique LNG export project from the first quarter of 2027 to the first quarter of 2029.
TotalEnergies has officially postponed the start date of the Mozambique LNG export project from the first quarter of 2027 to the first quarter of 2029.
Last year, the large French company expected Mozambique LNG, along with its other projects involved, i.e. Qatar NFE/NFS, Papua LNG and Rio Grande LNG, to start LNG production by 2028.
TotalEnergies also revised upwards the engineering, procurement and construction (EPC) cost of the project’s gas treatment and liquefaction facilities to more than US$10 billion, while the cost had initially been estimated at between US$8 billion and US$9 billion.
However, TotalEnergies CEO Patrick Pouyanne reiterated that the project “remains profitable” and his company remains “committed” to it, as he plans to meet with Mozambique’s new president (who will be elected this week) to discuss the project’s development status and future plans.
The Mozambican government has repeatedly asked Total to restart the country’s LNG project, as the African country wants to take advantage of current high LNG prices and the global shift to cleaner energy sources.
Meanwhile, TotalEnergies said that the decision to restart the project depends on security guarantees in the region, resolving differences with contractors over the extra cost of the project and getting the green light for financing the project from credit agencies.
It seems that cost and financing considerations are now the last issues before restarting Mozambique LNG, as there has recently been “progress on security” and “70% to 80% of a $14 billion financing package underpinning the project has been reconfirmed by lenders”.
The operator wants to have “a clear view of the costs of the project after an interruption of more than two years – which should be maintained and not increased”.
According to the Global LNG Database® , construction of the 12.88 MMT/Y Mozambique LNG project began by its main EPC contractor CCS JV (McDermott International, Ltd, Saipem and Chiyoda Corporation) at the end of 2019.
The project was 21% complete shortly before it was suspended following an attack in March 2021 on the city of Palma, on the project’s doorstep.
SOURCE: https://www.globallnginfo.com/ShowNews.aspx?NewsID=20240000066
