Mozambique LNG faces new delays: Gas production only in 2029

This information confirms that the actual production of gas from Cabo Delgado through Mozambique LNG will only begin in 2029, provided no further security-related setbacks occur. As known, the gas exploration in this northern province of Mozambique is at risk due to the outbreak of terrorism.

The order has been delayed but is still ongoing, while waiting for the lifting of the force majeure clause invoked to halt construction works at the Afungi logistics base in Cabo Delgado following the attack on Palma on March 24, 2021.

The information comes from TradeWinds, a global source of LNG industry information, citing the contracted shipyards. “The batch delivery of Mozambique LNG carriers is formally delayed to 2028 and 2029,” writes TradeWinds.

According to the source, the agreements made with the shipyards of the HD Hyundai Group and Samsung Heavy Industries concerning the ships were contracted by four shipowners due to agreements assumed with the long-term project and according to the adjusted schedule of activities by Mozambique LNG, which is expected to resume work in Cabo Delgado.

To ensure the resumption, TotalEnergies signed a controversial billion-dollar contract with a Rwandan security company, ISCO. ISCO Segurança is a joint venture between ISCO Global Limited of Rwanda and an unidentified Mozambican company, to provide security services in Afungi, protecting the natural gas exploitation.

Mozambican critics argue that hiring this company poses a threat to sovereignty, as it involves the presence of foreign forces on national soil.

LNG carriers are tankers that transport liquefied natural gas from liquefaction units to onshore regasification points near distribution sites. These carriers are essential during the gas production and export process to consumer markets, and this delay implies that if the project resumes soon as expected, production in Afungi will only commence in 2028 and 2029.

While the delays in TotalEnergies' project orders are being announced, the Coral Sul FLNG Mozambique project ship, operated by Italy's ENI in the deep waters of Cabo Delgado, has reached a satisfactory production milestone. The liquefaction technology supplier Air Products states that Coral Sul FLNG has passed its performance test.

Air Products, an American international company whose primary business is selling gases and chemicals for industrial use, announced that its dual mixed refrigerant LNG processing technology and equipment passed the performance test, achieving a production capacity of over 3.4 million tonnes per year.

According to information published by LNG Prime, the company reaffirms the process efficiency. “The efficiency of the AP-DMR process, combined with the use of aeroderivative machinery, results in a lower carbon intensity than all other LNG processes in floating service,” writes the site, quoting the company.

The report explains that the company’s involvement with the FLNG project began in 2013 with conceptual work, leading to the selection of the AP-DMR LNG process technology and equipment.