TotalEnergies restarts $20bn LNG project in Mozambique after 5-year freeze

"French energy giant TotalEnergies has restarted construction of a $20bn liquefied natural gas (LNG) project in Mozambique after being forced to pause operations indefinitely owing to escalating violence in the region. The company's executive Patrick Pouyanne and Mozambique's President Daniel Chapo jointly announced the official relaunch of the project on Thursday at a ceremony near the construction site in Afungi, located in the gas-rich Cabo Delgado province in Mozambique's northeast."

"Pouyanne said in a statement issued by TotalEnergies that the project would bring significant economic benefits to the country, creating up to 7,000 direct jobs for Mozambicans during construction, with contracts awarded to local companies expected to amount to more than USD 4 billion. Security is deemed to have improved in Cabo Delgado, particularly with the deployment of Rwandan soldiers around the Afungi construction site. But the delays have cost significant sums of money, forcing the project's parties to renegotiate terms."

TotalEnergies restarted construction of a $20bn liquefied natural gas (LNG) project at Afungi in Cabo Delgado province. Operations were suspended in 2021 amid ISIL-linked violence that killed more than 6,400 people over eight years, according to ACLED. The project is designed to produce over 13 million tonnes of LNG annually and is expected to come on stream in 2029, potentially generating up to $35bn for government coffers. TotalEnergies says construction could create up to 7,000 direct jobs and more than $4 billion in local contracts. Security around Afungi has improved with Rwandan troop deployments. Delays forced renegotiations and prompted criticism from environmental and human rights groups who say the project will bring little benefit to poor Mozambicans.

Read at www.aljazeera.com