French energy giant, TotalEnergies, has announced plans to seek approval from the Mozambican government to lift the force majeure on its $20 billion liquefied natural gas (LNG) project.
The project has been suspended since 2021 following insurgent attacks in the northern part of the country.
Chief Executive Officer of TotalEnergies, Patrick Pouyanne, disclosed this on Tuesday on the sidelines of the World Gas Conference, stating that construction work on the project could resume as early as mid summer if approval is granted.
“The security situation has improved,” Pouyanne said, while speaking with Reuters. “It will be up to the government of Mozambique to approve lifting of this force majeure.”
Force majeure since 2021
The LNG development, located in the Cabo Delgado region, has remained on hold for over three years after violent attacks by Islamist militants led to the evacuation of personnel and suspension of operations.
The project involves the development of the Golfinho and Atum natural gas fields in Mozambique’s Offshore Area 1 and the construction of a two train liquefaction facility.
With a planned annual production capacity of 13.12 million metric tonnes, the Mozambique LNG project is expected to transform the country into a major player in the global gas market.
TotalEnergies holds a 26.5 percent operating stake in the development, alongside Japan’s Mitsui & Co with 20 percent, Mozambique’s state owned ENH with 15 percent, and a consortium of Indian state run firms and Thailand’s PTTEP holding the remaining shares.
TotalEnergies had declared force majeure in April 2021 after an escalation of insurgent violence near the site, including attacks in Palma, close to the project location.
Since then, security efforts led by Rwandan and Southern African Development Community (SADC) troops have reportedly restored relative calm to the region.
Other TotalEnergies projects
Apart from the Mozambique project, Pouyanne also spoke about the company’s ongoing efforts to cut capital expenditure across other LNG assets.
He noted that TotalEnergies was looking to reduce the budget for its Papua LNG project by between 20 to 25 percent.
The Papua New Guinea based development, which is separate from the Mozambique project, is a joint venture between TotalEnergies, ExxonMobil, Santos, and the state owned Kumul Petroleum.
The project, which targets an output of 5.4 million metric tonnes per year, is still undergoing evaluation and design adjustments.
In sum, the revival of the Mozambique LNG project could mark a major step forward for both TotalEnergies and Mozambique, potentially unlocking significant economic benefits and reinforcing Africa’s role in the global energy supply chain.
However, the final decision now rests with the Mozambican authorities.
