TotalEnergies, the French oil and gas giant, intends to resume operations at the Area 1 liquefied natural gas (LNG) project in Mozambique’s Rovuma Basin as early as January 2024, if security conditions permit, the Rede BNN news portal reported on Monday, November 13.
Without providing more specific information on the subject, the website, which quotes the director-general of the multinational, Patrick Pouyanné, says that the relationship will depend on the re-establishment of peace and stability in Cabo Delgado province and the provision of adequate security measures by the Mozambican authorities and regional forces.
The Mozambican government has also expressed its commitment
Patrick Pouyanne, quoted by the portal, also said that the company is working on the basis of a revised budget and timetable for the project, which will be announced in due course in 2023.
After the Mozambican government, together with regional blocs such as the Southern African Development Community (SADC) and the Rwandan government, sent troops and resources to fight the insurgency and protect the LNG areas in Afungi, a military intervention has been taking effect, with the militants regaining control of several strategic locations, including Palma.
The Mozambican government has also expressed its commitment and support for the project, guaranteeing cooperation and collaboration to TotalEnergies and its partners.
The Project
The project involves the development of offshore gas fields in the Rovuma basin and the construction of an onshore LNG plant and export terminal on the Afungi Peninsula. The project is expected to generate significant revenues and benefits for the Mozambican economy and people, and to contribute to the global energy transition and security.
TotalEnergies is the operator and largest shareholder in the project, with a 26.5% stake. The other partners include the Mozambican public company ENH, the Japanese company Mitsui, the Thai company PTTEP and the Indian companies ONGC Videsh, Bharat Petroleum and Oil India. The project has secured long-term contracts with buyers in Asia and Europe, such as the China National Offshore Oil Corporation, Tokyo Gas, Centrica and Shell.
