TotalEnergies insists $20 billion Mozambique LNG project will be ready in 2029.

TotalEnergies' plans to restart its Mozambique LNG project, targeting a 2029 completion. CEO Patrick Pouyanne confirmed this readiness, contingent on new government approvals. The force majeure, in place since April 2021 due to insecurity in Cabo Delgado province, was recently lifted following successful joint military efforts by Mozambican forces, Rwandan troops, and the Southern African Development Community (SADC).

The project's cost has increased to $20.5 billion (from a previous $15.5 billion), with an additional $4.5 billion attributed to heightened security expenses. TotalEnergies has submitted a revised development plan and budget, which needs approval from Mozambique's Council of Ministers before construction fully resumes. The company has also requested a 10-year extension to the development and production period, a proposal currently under review by President Daniel Chapo and the Mozambican government. Despite some analysts' caution regarding long-term regional stability since the 2017 insurgency, the TotalEnergies-led consortium maintains that security has significantly improved. Mozambique's state oil company, Empresa Nacional de Hidrocarbonetos (ENH), holds a 15% stake in the project, which aims to produce 13 million metric tons per year of LNG.

Key Takeaways:

• Project Restart: TotalEnergies has lifted its force majeure on the Mozambique LNG project.

• New Completion Target: The project is now aimed for completion by 2029, a significant delay from its original mid-2024 target.

• Increased Cost: The total project cost has risen to $20.5 billion, including an extra $4.5 billion for security.

• Key Figure: Patrick Pouyanne, CEO of TotalEnergies, is leading the restart efforts.

• Key Approval: The Mozambican government's approval of the revised plan is crucial for full mobilisation.

• Longer Horizon: TotalEnergies seeks a 10-year extension for the project's development and production period.

• Security Progress: Improved security by Mozambican forces, Rwandan troops, and SADC was key to lifting the force majeure.

• Stakeholders: ENH holds a 15% stake in the project, aiming for 13 million metric tons per year of LNG production.

Mozambique LNG ( AI Generated)

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