Post-election violence in Mozambique, following the constitutional council confirmed the ruling Frelimo party victory in the disputed presidential election in October.
Post-election violence in Mozambique, following the constitutional council confirmed the ruling Frelimo party' s victory in the disputed presidential election in October, has challenged TotalEnergies' plan to re-start its Mozambique LNG project in 2025.
Frelimo has ruled since the country’s independence from Portugal in 1975, but the African country experiences high levels of economic difficulties, poverty and terrorist activities particularly in the northeast region of Cabo Delgado where the LNG project is located.
TotalEnergies’ CEO, Patrick Pouyanne has recently reiterated that the project “remains profitable” and his company remains “committed" to it as he plans to meet Mozambique’s new president to discuss the project’s development status and future plans.
However, the company has reminded that a decision to restart the project depends on assurances of security in the region, settlement of differences with contractors over the project’s extra cost, and getting green light on the project’s financing from credit agencies.
TotalEnergies wants to have “a clear vision of the costs of the project after an interruption of more than two years - which must be maintained and not increased”.
Earlier, Global LNG Info Analytics had reported that TotalEnergies has postponed the Mozambique LNG export project’s start-up date from the first quarter of 2027 to the first quarter of 2029.
It now appears that the political situation has been added to the cost and financing considerations as critical issues before Mozambique LNG can be restarted.
According to the Global LNG Database®, the 12.88 MMT/Y Mozambique LNG project's construction started by its main EPC contractor CCS JV (McDermott International, Ltd, Saipem and Chiyoda Corporation) in 2019 late.
The project was 21% complete just before suspension after a March 2021 terrorists attack on the town of Palma, on the doorstep of the project.
In April 2021, TotalEnergies declared force majeure on the project and has removed all staff from the project’s site.
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