TotalEnergies has said that it plans to re-commence Mozambique LNG project in the middle of this year after relaunching detailed engineering, new arrangements with EPC contractors and remobilizing project financing.
TotalEnergies has said that it plans to re-commence Mozambique LNG project in the middle of this year after relaunching detailed engineering, new arrangements with EPC contractors and remobilizing project financing as the French operator is “fueling future LNG growth”.
TotalEnergies had recently revised up Mozambique LNG export project’s EPC (engineering, procurement and construction) cost to about US$ 10 billion amid dispute with EPC contractors. The cost had been initially estimated between US$ 8 billion to US$ 9 billion.
Mozambique’s government has repeatedly asked TotalEnergies to restart the country’s LNG project as the African country wants to take advantage of the current high prices of LNG, the global shift towards cleaner energy source and most recently Biden administration’s decision to pause US LNG export projects approval.
However, the French operator wants to have “a clear vision of the costs of the project after an interruption of near three years - which must be maintained and not increase”. It has also reiterated that restart the project depended on assurances of security and human rights in the region.
The operator had earlier revealed that restarting of the Mozambique LNG project was being complicated by disagreements with the project's contractors over extra costs. “The cost considerations were now the last step before restarting Mozambique LNG as the security situation has stabilized.”
According to the
Global LNG Database®, the 12.88 MMT/Y Mozambique LNG project's construction started by its main EPC contractor CCS JV (McDermott International, Ltd, Saipem and Chiyoda Corporation) in 2019 late.
The project was 21% complete just before suspension after a March 2021 attack on the town of Palma, on the doorstep of the project.
In April 2021, TotalEnergies declared forcemajeure on the project and has removed all staff from the project’s site. However, it has recently retained its target to start production at Mozambique LNG alongside with its other involved projects i.e. Qatar NFE/NFS, Papua LNG and Rio Grande LNG by 2028.
Mozambique LNG project's shareholders are TotalEnergies (26.5%), ENH (15%), Mitsui E&P (20%), ONGC Videsh Ltd (10%), Beas Rovuma Energy (10%), BPRL Ventures (10%) and PTTEP (8.5%).
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