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TotalEnergies has been dealing with ongoing delays and insurgencies regarding its Mozambique LNG project for several years now. The project is expected to start production in 2029.
ADVERTISEMENTFrench energy giant TotalEnergies has further put off its liquefied natural gas (LNG) project in Mozambique, following ongoing political uncertainty and escalating security issues, according to Financial Times.
The FT article is based on comments made by TotalEnergies CEO Patrick Pouyanné, during the Investor Day on 2 October 2024, which took place before the Mozambican elections.
The LNG project is currently worth approximately $20bn (€19.14bn) and has already faced a number of hurdles.
It was initiated in 2019, following a final investment decision and was expected to help towards turning around Mozambique’s economy. This project was the continent’s biggest foreign direct investment (FDI) project at the time.
Armed uprisings halt work
However, the company was compelled to declare force majeure back in 2021, following insurgent attacks in Mozambique’s Cabo Delgado province. These attacks took place close to a TotalEnergies site, which was expected to be used to convert gas into liquid.
Although TotalEnergies planned to resume the project by the end of last year, the plans were delayed following increased violence and unrest after the October presidential election, the result of which remains heavily contested. Violent protests have not only led to the loss of lives but have also hit businesses and caused ports and land borders to be shut down.
Back in 2021, following the declaration of force majeure, TotalEnergies said on its website: “Considering the evolution of the security situation in the north of the Province of Cabo Delgado, in Mozambique, we confirm the withdrawal from Afungi of all personnel from the Mozambique LNG Project. This situation leads TotalEnergies EP Mozambique Area 1, Lda. (TEPMA1), as operator of the Mozambique LNG Project, to declare force majeure.
“We express our solidarity with the Government and the Mozambican people and hope that the actions carried out by the Government of Mozambique and its regional and international partners allow for the re-establishment of security and stability in the Province of Cabo Delgado in a sustained manner.”
The company has indicated there may be hope of a turnaround soon, following Rwanda and Mozambique striking up a partnership. Rwanda has deployed thousands of troops to help Mozambique.
