Business leaders in Cabo Delgado are expressing optimism about the resumption of the natural gas exploration project in Area 1 of the Rovuma basin, led by French multinational TotalEnergies, almost five years after it was halted due to insecurity linked to terrorist attacks in the province, the newspaper O País reported on Thursday, January 29.
On the Afungi peninsula, where the Mozambique LNG project is located, there is already some movement from companies awaiting the effective restart of operations, although the direct involvement of local businesses is still limited.
“From the announcement until now, there has only been this movement here, but we still have no record of companies contracted to carry out work,” said Mamudo Irache, representative of the Confederation of Economic Associations of Mozambique (CTA) in Cabo Delgado.
The suspension of the Liquefied Natural Gas project in Area 1 of the Rovuma basin caused significant losses, leading to the bankruptcy of thousands of companies and negatively affecting the national economy. Even so, entrepreneurs recognize that the interruption was a necessary evil given the security context in the province.
During the suspension period, according to Mamudo Irache, the local private sector focused on preparing and training companies to meet the project’s requirements. “Throughout this period, we have been preparing companies and today we have sufficient capacity to work in the Rovuma Basin, from food supply and service provision to construction and processing of expatriate documentation,” he explained.
Despite the expectations generated by the relaunch of Mozambique LNG, concerns remain about access and the alleged isolation of the Afungi peninsula, a factor that could hinder the effective integration of local companies into the project’s supply chain.
The Mozambique LNG project was initially scheduled to start in 2022, becoming the first large-scale natural gas exploration venture in Cabo Delgado. However, terrorist attacks in the province forced the suspension of activities, postponing an investment considered strategic for the country’s development.
