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Total Energies: “Three Conditions for Mozambique LNG’s Partners to Restart Project”

Total Energies: “Three Conditions for Mozambique LNG’s Partners to Restart Project”

There are at least three conditions for Mozambique LNG’s partners to decide on a possible restart of the project, a TotalEnergies spokesperson has told Rigzone.

These include “assurances regarding the security of Cabo Delgado”, which the spokesperson said the company “saw on the spot is improving”, as well as “assurances in terms of human rights”, which the spokesperson said will be clarified by a mission entrusted to Jean-Christophe Rufin, which TotalEnergies has described as “a recognized expert in humanitarian action and human rights”.

Another condition, according to the spokesperson, comprises “a clear vision of the costs of the project after an interruption of more than two years”, which the spokesperson said “must be maintained and not increase”.

“This requires precise work and commitments from the contractors. The contractors are impatient. The investor group will take as long as it takes,” the spokesperson added.

The spokesperson also highlighted that a restart “is a decision of Mozambique LNG, not a decision of TotalEnergies which only owns 26.5 percent of the project”.

“Given the context, the decision will have to be unanimous, and TotalEnergies’ position is that it is appropriate to take the time to have the expected assurances before considering a possible restart,” the spokesperson said.

Also speaking to Rigzone, Siamak Adibi, the Principal Consultant & Head of Middle East Gas Team at FGE, said, “it is hard to tell when Mozambique LNG will start”.

“Security has improved significantly since 2021 and TotalEnergies is in discussion with the Saipem led consortium to gradually start construction from mid-2023,” Adibi added.

“If they can resume their construction works by 2023, we may still see their first gas in 2028,” Adibi continued.

First Onshore LNG Development

Mozambique LNG is described by TotalEnergies as the first onshore development of a liquefied natural gas plant in the country. The project includes the development of the Golfinho and Atum fields located in Offshore Area 1 and the construction of two liquefaction trains with a total capacity of 13.1 million tons per annum, the company shows on its website.

The project started with the discovery of a vast quantity of natural gas off the coast of northern Mozambique in 2010, leading to a $20 billion Final Investment Decision in 2019, TotalEnergies’ site notes. In April 2021, the company declared force majeure on the project. According to TotalEnergies’ site, it had been on track to deliver LNG in 2024.

“Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site – this situation leads Total, as operator of Mozambique LNG project, to declare force majeure,” the company said back in April 2021.

“Total expresses its solidarity with the government and people of Mozambique and wishes that the actions carried out by the government of Mozambique and its regional and international partners will enable the restoration of security and stability in Cabo Delgado province in a sustained manner,” the company added in the statement at the time.

TotalEnergies EP Mozambique Area 1 Limitada, which is a wholly owned subsidiary of Total SE, holds a 26.5 percent interest in the Mozambique LNG project. Its partners comprise Mitsui E&P Mozambique Area1 Limited, which holds a 20 percent interest, ENH Rovuma Área Um, S.A., which holds a 15 percent stake, ONGC Videsh Rovuma Limited, Beas Rovuma Energy Mozambique Limited, and BPRL Ventures Mozambique B.V., which each hold a 10 percent interest, and PTTEP Mozambique Area 1 Limited, which has an 8.5 percent stake.

CEO Visit to Cabo Delgado

In February this year, TotalEnergies announced that its Chairman and CEO, Patrick Pouyanné, visited the Cabo Delgado province of Mozambique to review the security and humanitarian situation. He was said to have visited the Afungi industrial site, the resettlement village of Quitunda, the towns of Palma and Mocimboa da Praia and met with President Filipe Nyusi to discuss the security and humanitarian situation in Cabo Delgado province.

During the visit, Pouyanné said he had entrusted Rufin with an independent mission to assess the humanitarian situation in Cabo Delgado province, a statement posted on the company’s website noted, adding that this mission will also evaluate the actions taken by Mozambique LNG and will propose any additional actions to be implemented, if required.

“Since 2021, the situation in Cabo Delgado province has improved significantly, thanks in particular to the support provided by the African countries that committed themselves to restore peace and security”, Pouyanné said in a company statement back in February.

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The lifting of the force majeure and the resumption of activities at the Mozambique LNG project site require, in particular, the restoration of security in the region, the resumption of public services and the return to normal life for the people of the region,” he added in the statement.

“The mission entrusted to Jean-Christophe Rufin should enable Mozambique LNG’s partners to assess whether the current situation allows for a resumption of activities while respecting human rights,” he added.

Rigzone

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