Page 4 - GLNG Week 14 2021

GLNG COMMENTARY GLNG

Mozambique LNG’s fate in doubt

Although military forces have offered reassurances, Total has evacuated all its

workers from its construction site on the Afungi Peninsula

PROJECTS & UNCERTAINTY about the fate of the Mozam- Maputo’s commitments
COMPANIES bique LNG project has significantly grown over Unfortunately, though, Maputo appears to be
the last week. having difficulty upholding its commitments
WHAT: France’s Total, the leader of the consortium, under the agreement.
Total has stopped all appears to have abandoned its hope of restarting The document called for Mozambique’s spe-
construction work on its work at the site on the Afungi Peninsula where cial forces, known as the Defence and Security
LNG plant and onshore it is building a natural gas liquefaction complex. Forces (FDS), to be responsible for setting up
complex. Instead, it has withdrawn the remaining mem- and maintaining the secure zone. However, FDS
bers of its workforce from northern Mozam- troops were not able to prevent Ahlu Sunnah
WHY: bique in the wake of an Islamist group’s attack Wa-Jamo (ASWJ), the Islamist group that has
Security conditions on the nearby town of Palma on March 24. been working since 2017 to seize control of the
do not appear to have It announced its decision in a statement dated northern Cabo Delgado province, from attack-
stabilised since ASWJ March 27, saying: “The remobilisation of the ing Palma on March 24.
began attacking Palma on project that was envisaged at the beginning of Nor were they able to clear the area of ASWJ
March 24. the week is obviously now suspended. Total has fighters quickly. Instead, Palma was not declared
decided to reduce to a strict minimum level the safe until several days later, after the arrival
WHAT NEXT: workforce [at] the Afungi site.” of troops from the country’s regular armed
Maputo’s response to According to press reports, all of Total’s forces, known as Forças Armadas de Defesa de
the crisis will affect employees had departed from the site by April Moçambique (FADM).
Total’s plans for returning 2. As of press time, the company had not yet said Meanwhile, some observers have complained
to work – and other when work might resume. that Maputo reacted too slowly to the emerg-
companies’ plans for The French major has been working with ing crisis. Upstream quoted Lionel Dyck, the
their own gas projects. Mozambique’s government for several months head of Dyck Advisory Group (DAG), a private
to secure protection for operations, and its South African security contractor, as saying that
efforts have borne some fruit. Last month, for FADM had been slow to provide support to his
example, the two sides reached an agreement men and to local police forces.
on the establishment of a secure zone encom- For its part, FADM has presented a more
passing the construction site on the Afungi confident face to the public. Chongo Vidigal, a
Peninsula and surrounding areas, including spokesman for the armed forces, was quoted as
Palma. (The zone also covered Quitunda, the saying in a Radio Mozambique report last week
village where Total arranged to resettle people that the construction site was still “protected.”
displaced by its construction project.) Vidigal also downplayed reports of chaos and

P4 www. NEWSBASE .com Week 14 09•April•2021