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Mozambique agrees to revive $20 billion Cabo Delgado gas project | Oil & Gas News

TotalEnergies owns a 26.5% operating stake in the project, which was suspended in 2021 due to growing insecurity.

Mozambican President Filipe Nyusi said it was safe to restart the Cabo Delgado liquefied natural gas (LNG) project, which was suspended in April 2021 after rebels attacked civilians.

Mozambique wants to take advantage of the current high price of liquefied natural gas and the global trend towards cleaner energy sources, Nyusi said Wednesday at a mining and energy conference in Maputo.

Since 2017, violence by armed groups linked to the Islamic State (ISIS) in Mozambique’s northern province has claimed thousands of lives and undermined billions of dollars in investments, including the one in which TotalEnergies holds a 26.5 percent stake. $20 billion LNG project.

“The working environment and security in northern Mozambique make it possible for Total to resume its activities at any time,” Nyusi said.

TotalEnergies spokeswoman Stephanie Platat said the decision to restart the project hinged on security and human rights assurances in Cabo Delgado, as well as “a clear understanding of the project’s costs after a hiatus of more than two years – which must be maintained and not increased”.

“The restart was a decision for Mozambique LNG and not for TotalEnergies, which only owns 26.5% of the project. Given the context, the decision had to be taken unanimously, and TotalEnergies’ position was to take the time to get Anticipated assurances are appropriate,” Platat said.

The French oil company bought an operating stake in the project for $3.9 billion in 2019. Delays in the project led the International Monetary Fund to downgrade its growth forecast for the country.

In February, TotalEnergies said the situation in Cabo Delgado had “improved significantly” after the African country deployed troops to help Mozambique’s security forces deal with an armed uprising in 2021.

The energy giant’s chairman and chief executive, Patrick Pouyanne, visited Mozambique two months ago to meet Nyusi and review the security and humanitarian situation in Cabo Delgado.

Following Pouyanne’s visit, TotalEnergies announced the appointment of Jean-Christophe Rufin, who is said to be an expert in humanitarian action and human rights, to independently assess the situation in Cabo Delgado province.

The assessment will help TotalEnergies and its partners determine whether conditions are suitable for resuming the project.

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