French oil company TotalEnergies announced on Wednesday, June 18, that it plans to resume development of its liquefied natural gas (LNG) megaproject in northern Mozambique “this summer,” after having suspended operations in 2021 due to armed attacks, according to Reuters.
The announcement was made by TotalEnergies CEO Patrick Pouyanné during his speech at the Japan Energy Summit, which is taking place in Tokyo until June 20. When asked about the project’s timeline, Pouyanné stated that the company is ready to restart activities in the coming months, reaffirming its commitment to the investment, valued at around 1.28 trillion meticais (USD 20 billion).
The project, located in Cabo Delgado province, involves the development of the Golfinho and Atum gas fields within the Area 1 offshore block, as well as the construction of a liquefaction plant with two production trains. The total estimated capacity of the project is 13.12 million metric tons of LNG per year.
Operations were halted in 2021 after insurgent attacks intensified in the region, leading TotalEnergies to declare force majeure and evacuate all personnel from the site.
The shareholder structure of the consortium is led by TotalEnergies, which holds a 26.5% stake. Japan’s Mitsui & Co owns 20%, while Mozambique’s state oil company ENH holds 15%. The remaining shares are divided among Indian state-owned firms and Thailand’s PTTEP. The potential restart of the project is seen as a crucial step for Mozambique’s economy, which is relying heavily on natural gas revenues to boost economic growth, attract foreign investment, and strengthen financial stability.
Recently, Maxime Rabilloud, TotalEnergies’ country director in Mozambique, invited about 100 people—including contractors and subcontractors—to a videoconference on May 27. The meeting aimed to outline new security measures being implemented by the oil giant at the Afungi site, where two LNG units are to be built (with a combined capacity of 13.1 million metric tons per year).
The 120 participants, mainly representatives of CCS JV (the consortium leading the project, composed of Saipem, McDermott International, and Chiyoda), along with subcontractors such as WBHO and Gabriel Couto, were informed that the LNG park area on the Afungi Peninsula will be completely inaccessible by land—both for the delivery of materials and for personnel movement. Supplies, construction materials, and workers will therefore arrive exclusively by sea or air, as Afungi is equipped with an airstrip built by Gabriel Couto.
Source: Diário Económico
