The $20 billion megaproject (17 billion euros), led by the French oil company TotalEnergies, has been delayed for the past four years due to terrorist attacks in Mozambique’s northern province.
“The Mozambique LNG consortium decided to suspend the ‘force majeure’, and the Mozambican presidency was officially notified on Friday through a formal letter,” stated an official from TotalEnergies, the leader of the consortium in Area 1 of the Rovuma Basin.
“As the final step before the full relaunch of the project, the Mozambican Council of Ministers needs to approve an addendum to the Development Plan (PoD) with updated budget and schedule,” the source added.
TotalEnergies’ CEO, Patrick Pouyanné, announced on September 30 the projection to start LNG production in Mozambique by 2029. The megaproject has been on hold since 2021, and the company has presented a new development plan to the government.
“Everything is ready. We are indeed mobilizing on the ground, but the final part of officially lifting the ‘force majeure’ requires the government’s approval of the updated development plan, as we need to update it with a new operational start goal,” Pouyanné announced during an investor meeting in New York to present the overall performance data of the French oil company.
The investment in Cabo Delgado, led by TotalEnergies, is projected to produce 13 million tons of LNG per year (mtpa), with 40% of the project currently completed, according to the company.
In 2021, in response to violent terrorist attacks in the area, TotalEnergies invoked the ‘force majeure’ clause, suspending activities due to the attacks in Cabo Delgado, amid the development of a natural gas production and export plant in the Afungi Bay.
“We plan to start operations in 2029 and naturally update the budget to reflect the ‘force majeure’ impact. This matter is being assessed, and I believe we will move forward very quickly,” added Pouyanné.
Mozambique has three LNG megaprojects off the coast of Cabo Delgado, with only the Eni, Coral Sul, and now Coral Norte advancing in the province’s offshore. The others are being developed onshore, notably on the Afungi Peninsula.
Mozambican President Daniel Chapo insisted on October 2 that the Mozambique LNG consortium lift the ‘force majeure’ clause, assuring that conditions in Cabo Delgado were set for resumption.
“The conditions for lifting the ‘force majeure’ are met, and we await the announcement from the concessionaire of Area 1, the Mozambique LNG project, on this matter,” Chapo said during the signing of the Final Investment Decision (FID) for the new 7.2-billion-dollar (6.2 billion euros) Coral Norte floating LNG platform, a project operated by Eni, which will double Mozambique’s LNG production to seven mtpa from 2028.
The head of state recalled that the Mozambican government, in collaboration with concessionaires, “has been taking measures to address security challenges.”
To this end, he highlighted that Mozambique signed in August with Rwanda, whose military is already operating in Cabo Delgado to combat terrorist groups in support of the Mozambican army, the Status of Forces Agreement (SOFA).
