TotalEnergies will resume its $20 billion Mozambique LNG project, with a production start date of 2029
TotalEnergies has said that it will resume its $20 billion LNG project in Mozambique, with the goal of starting production by 2029 as security improves.
According to CEO Patrick Pouyanné, TotalEnergies will resume construction on its $20 billion liquefied natural gas project in Mozambique, with the goal of starting production by 2029, after better security conditions permitted a return to the area affected by the conflict.
“We’ll start production by 2029,” Pouyanné stated to the Japanese tabloid. He added that although engineering work had continued off-site, construction at the site was halted four years ago due to strikes by rebels affiliated with the Islamic State. According to him, “people kept up with the engineering,” and “we should be able to meet” the 2029 goal.
Leading the French energy behemoth that has a 26.5% share in the Mozambique LNG project, Pouyanné expressed his confidence that regional security has stabilized enough to proceed.
“For the construction of this plant, I am confident that we can arrange, welcome, and house all of the workers,” he stated.
Due to militant unrest that halted work in the northern region of Cabo Delgado in 2021, the mammoth LNG project has been put on hold. But now that security has improved and US Export-Import Bank funding has been guaranteed, there is a better chance that the development will resume.
The start date of 2029 was reportedly in jeopardy in January. However, Pouyanné later hinted that due to guarantees of funding and an improved security environment, construction could start as soon as this summer.
