TotalEnergies likely to resume operations in Cabo Delgado soon, according to IMF

"The security conditions in the north [Cabo Delgado] continue to improve, and the restart of the major Liquefied Natural Gas (LNG) project, which was halted in April 2021, is expected at the beginning of 2024," states an IMF report this week on the approval of the third review of Mozambique's Extended Credit Facility (ECF) program.

The natural gas terminal that TotalEnergies began constructing in Cabo Delgado is one of the largest investments of its kind in Africa. However, the project has been on hold since 2021 due to terrorist attacks in the province.

According to the IMF report, which followed the announcement of the completion of the review and the disbursement of new financial support, Mozambique's economy grew by 5.9% at the end of the third quarter of 2023 compared to the same period the previous year. However, it is still "below potential," with the construction sector continuing to contract.

With the approval of this third tranche, total disbursements to Mozambique under this IMF ECF amount to about 273 million dollars. This ECF program, approved in May 2022, provides a total funding of 456 million dollars to Mozambique.

TotalEnergies is scheduled to communicate its 2023 results and announce objectives for 2024 on February 7, as per the oil company's information. 

Patrick Pouyanne, the president of TotalEnergies, announced last September that the French oil company planned to restart construction of the liquefied natural gas plant in Mozambique, considering that "the situation has clearly improved." He stated that the insecurity which led to the suspension of works in 2021 "has clearly improved," allowing the resumption of activities in Cabo Delgado.