TotalEnergies plan to restart LNG project is a positive for the energy minister of Mozambique

Mozambique’s energy minister stated on Friday that the government had not received a formal request from TotalEnergies for the lifting of a declaration of force majeure on the $20 billion liquefied gas (LNG), project in the country. However, he was optimistic about TotalEnergies' plan to restart its development during the summer.

After meeting with Japan's Industry Minister, Muto Yoji, Estevao Palae, the Minister of Mineral Resources and Energy, told reporters that force majeure would be lifted once conditions were in place for the project to resume operation.

Pale stated that the government was doing all it could to restart the project.

He said that he was working with the partners to improve the security of the project.

Patrick Pouyanne, the Chief Executive Officer of TotalEnergies, said on Wednesday at a conference about energy in Tokyo that he expected development to resume "this summer".

The Mozambique LNG Project has been covered by force majeure due to insurgent attacks since 2021. It includes the development of the Golfinho, Atum and Offshore Area 1 natural gas fields and the construction of a two train liquefaction facility.

The annual production capacity will be 13.12 million metric tonnes.

TotalEnergies, a French oil and natural gas giant, is the operator of this project with a 26.5% stake. Mitsui & Co has 80%. ENH, the state-owned company in Mozambique, holds 15% of the project. Indian state companies as well as PTTEP from Thailand owns the remainder. (Reporting and writing by Yuka Obayashi, Tokyo; editing by Jacqueline Wong, Tom Hogue; and Emily Chow from Singapore)

(source: Reuters)