TotalEnergies is reviving its USD 20-billion LNG project in Mozambique’s Cabo Delgado province after the government declared conditions safe for operations to restart, Lusa reported on Monday.
The project, halted in 2021 due to security threats from an Islamic State-linked insurgency near the Afungi site, is now set to resume following a high-level meeting between TotalEnergies CEO Patrick Pouyanne and President Daniel Chapo.
“At the government level, all the conditions are being created to allow investors to restart activities as quickly as possible,” Minister of Mineral Resources and Energy Estevao Pale said.
TotalEnergies has formally instructed contractors, including Mota-Engil and Besix, to remobilise equipment and personnel, and has issued a notice to proceed with site work at Afungi.
The development involves the offshore Golfinho and Atum gasfields and a two-train LNG plant with a design capacity of 13.12 million metric tonnes per year.
TotalEnergies holds a 26.5% operating stake, alongside Mitsui & Co, Mozambique’s national oil company ENH and a consortium of Indian and Thai firms.
The US Export-Import Bank has reaffirmed support with a USD 5 billion loan, while reapprovals are being pursued with UK and Dutch credit agencies.
The company targets full resumption by mid-2025, with first production expected in 2029.
Source: theenergyyear.com