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Area 1: IMF Expects Return of TotalEnergies Project in Coming Weeks

Area 1: IMF Expects Return of TotalEnergies Project in Coming Weeks

The International Monetary Fund (IMF) has revealed that a group led by TotalEnergies will probably resume activities at its liquefied natural gas (LNG) project in Cabo Delgado province, northern Mozambique, early this year.

According to a report by the entity published on Wednesday 17 January by Canadian channel BNN Bloomberg, the resumption of the project could be crucial in helping the country avoid a restructuring of the 900 million dollar Eurobond, the payment of which is due to start in 2028.

“Security conditions in the north continue to improve and the large LNG project, which was interrupted in April 2021, should restart in early 2024,” explained the IMF.

However, the organisation warned that although security has improved in some districts, social conditions remain fragile.

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“Although food insecurity affects around 10% of the population, humanitarian initiatives such as the World Food Programme (WFP) are struggling to obtain funding. Maintaining peace and stability in the region depends vitally on humanitarian assistance,” he emphasised.

The project, led by French company TotalEnergies (Area 1 consortium), in the Palma district of Cabo Delgado, is budgeted at 23 billion dollars, making it the largest foreign investment in Mozambique to date. However, it was interrupted in 2021 when Islamic terrorists attacked the town of Palma.

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