Continued Setbacks for TotalEnergies
TotalEnergies has once again postponed its liquefied natural gas (LNG) project in Mozambique, affected by years of political instability and escalating security challenges. The French energy giant shared this update in a report by the Financial Times, highlighting that the project anticipates starting production in 2029. This postponement marks another hurdle in a project that has encountered numerous issues since its inception.
Project Worth Billions Faces Challenges
The Mozambique LNG project is currently valued at around $20 billion (€19.14 billion) and was initiated back in 2019. It was hailed as a vital investment aimed at revitalizing Mozambique’s economy and represented the largest foreign direct investment (FDI) project in Africa at the time. However, various operational challenges have hindered its progress, leading to significant delays.
Security Threats Impede Progress
In 2021, TotalEnergies was forced to declare force majeure following violent insurgent attacks in Cabo Delgado province, near a key site planned for gas liquefaction. Despite the company’s initial plans to resume work by the end of last year, renewed violence and civil unrest after the contentious presidential election have hampered these efforts. The ongoing turmoil has resulted in loss of life and disruptions, shutting down businesses and major transport hubs.
Official Response to Security Crisis
After declaring force majeure, TotalEnergies expressed deep concern over the security situation in Cabo Delgado, stating its commitment to the Mozambican government and people. The company withdrew all personnel from the Mozambique LNG Project site, emphasizing the need for restored security and stability in the region. They remain hopeful that governmental efforts can facilitate a return to normal conditions conducive to operations.
Potential Path Forward with International Support
Despite the current delays, TotalEnergies sees a glimmer of hope for the project’s revival. Recently, Rwanda has initiated a partnership with Mozambique, deploying thousands of troops to assist in combating insurgency threats. This collaboration could pave the way for improved security and a more conducive environment for the LNG project to proceed, potentially marking a significant turning point in its troubled history.
SOURCE: Ref Image from Reuters
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