TotalEnergies awaits election outcome to resume LNG project in Mozambique
The President of the Republic, Filipe Nyusi, admits that the French oil company, TotalEnergies, will not return, at least with the country under its aegis, assuming that this multinational is awaiting the outcome of the electoral cycle in Mozambique to resume the Liquefied Natural Gas (LNG) project, called Mozambique LNG, which has been suspended for four years on the Afungi peninsula, in Palma, north of Cabo Delgado, due to insecurity in that district.
The approach clearly shows that the hegemony of the Head of State has come to an end and his power to influence decision-making processes has run out.
“In these election times, everyone likes to be certain to see how things end. So there is a coincidence of events in Mozambique. I would like them to ask this question next year so as not to embarrass the politicians”, said the Mozambican statesman when asked about the resumption of the Mozambique LNG project. He reiterated that TotalEnergies remains involved in the Area 1 project, in the Rovuma Basin, in Cabo Delgado, and then stated that “no one invests money in times of uncertainty”. Budgeted at around 20 billion dollars, the largest private investment underway in Africa, TotalEnergies has suspended its activities due to “force majeure”, until security conditions allow work to resume in Afungi. In recent months, terrorist attacks have significantly reduced, which is why the Southern African Development Community Military Mission (SAMIM) and the European Union Military Training in Mozambique (EUTM) ended their operations in the country in June and September, respectively.
The Defence and Security Forces managed to restore State authority in all districts that had been taken over by terrorists in Cabo Delgado.
Nyusi, however, stated that TotalEnergies must be certain that its investment is not at risk.
“These projects involve [a lot of] money, and no one would consciously invest money in a swampy area, at a time of uncertainty,” he said.
Nyusi also adopted the same position regarding the projects of the US multinational oil company ExxonMobil, operator of a consortium in Area 4 for the production of natural gas in the Rovuma Basin, in Cabo Delgado.
In New York, Nyusi held a working meeting with ExxonMobil vice-president Walter Kansteiner and learned that the technical project for natural gas extraction could be completed within a year.
ExxonMobil is leading the construction and operation of all future LNG and related facilities for the deepwater block in Area 4 of the Rovuma Base, off the coast of Cabo Delgado, operated by Mozambique Rovuma Venture (MRV), a consortium that includes the Italian oil and energy company ENI and China's CNPC.
The project has also been postponed several times as a result of violence perpetrated by terrorists in some districts of Cabo Delgado.
Mozambique is holding its 7th presidential and legislative elections, and its 4th provincial assembly elections, to be held on 9 October.
There are four candidates in the electoral race, namely Daniel Chapo, supported by the ruling Frelimo party, Ossufo Momade, supported by the Renamo party, the main opposition force, Lutero Simango, from the Democratic Movement of Mozambique (MDM), the third political force, and the young Venâncio Mondlane, who is running as an independent and supported by the PODEMOS party.
It should be noted that, in May of this year, the President of the French oil company TotalEnergies, Patrick Pouyané, guaranteed that the natural gas project at the Afunji logistics base, in the Palma district, in Cabo Delgado, would soon be resumed after being interrupted for security reasons.
Without giving any dates, he revealed that negotiations are underway with all the credit institutions interested in restructuring the financing agreements with a view to reaching an understanding on investments, which could happen soon, given that work in this regard is progressing well.
Pouyané announced the fact in Kigali, the Rwandan capital, following a meeting he held with Mozambican President Filipe Nyusi on the sidelines of the Africa CEO Forum, an event to seek investment for the public-private sector.
