Energy Gas Oil

TotalEnergies further delays $20bn Mozambique LNG project, FT reports

Photo caption: TotalEnergies logo

 

France’s TotalEnergies (TTEF.PA), opens new tab has further delayed its $20 billion liquefied natural gas (LNG) project in Mozambique, citing ongoing security concerns, the Financial Times reported on Wednesday.

The LNG project in the restive Cabo Delgado province has been on hold since 2021 when an Islamist insurgency threatened the site. Dozens of civilians were killed in the attacks in a nearby town, forcing Total to declare a force majeure and withdraw all staff from the construction site.

The company told the FT that plans to restart the project by the end of 2024 have slipped after violence flared following October’s disputed presidential election, putting at risk a goal to begin production in 2029.

Daniel Chapo of the long-ruling Frelimo party took office last week, following months of opposition protests against his disputed election victory in which civil society groups say more than 300 people have been killed.

TotalEnergies didn’t immediately respond to a Reuters’ request for comment.

“The priority is to restore peace and security in the Cabo Delgado and the lifting of the force majeure,” TotalEnergies told FT.

It needed “public services” and “normal life” to resume for the project to restart, the company added.

 

 

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