Mozambique’s second LNG project looms closer

TotalEnergies has published a humanitarian report outlining an action plan to boost local aid and restart its USD 20-billion onshore LNG project in Mozambique, the French energy giant announced on Tuesday.

The report by humanitarian action expert Jean-Christophe Rufin observed that danger zones were located south and west of the project site.

It also recommended an action plan including making payments to displaced families, building new houses, improving access to fishing, renegotiating terms with local defence groups and establishing a local foundation with a multiannual budget of USD 200 million.

The development located in Afungi was put on hold in April 2021 due to insurgents attacking civilians in the province.

The scope of the project includes development of the Golfinho and Atum fields at the nearby Offshore Area 1 concession that will tie back to an onshore LNG production facility.

In March 2023, TotalEnergies notified EPC contractors Saipem and its partners of the gradual restart of the project, which includes building two liquefaction trains with a combined capacity of 13 million tonnes per year of LNG.

TotalEnergies has a 26.5% stake in the project alongside local NOC Empresa Nacional de Hidrocarbonetos with a 15% stake, Japan’s Mitsui & Co. with a 20% stake, Indian companies ONGC Videsh, Bharat Petroleum and Oil India with 10% stakes each, and Thailand’s PTT Exploration and Production with the remaining 8.5% stake.

Mozambique saw its first export cargo depart from Eni’s Coral South LNG project in November 2022. The sister facility has the capacity to produce 3.4 million tonnes per year of LNG.