Page 8 - AfrOil Annual Review 2021

AfrOil MARCH AfrOil

More problems for

Mozambique LNG

Latest ASWJ campaign in Cabo Delgado appears to be directed at Total’s $20bn mega-project

CABO Delgado, the northernmost province investment project worth $20bn.
in Mozambique, is under siege once again. On In turn, Total’s problems are a major source
WHAT: March 24, Ahlu Sunnah Wa-Jamo (ASWJ), the of concern for the Mozambican government.
ASWJ has attacked Islamist group that has been attempting to seize Officials in Maputo hope to see two more con-
a village just a few control of the province, launched an attack on sortia – Coral South LNG, led by Eni (Italy), and
kilometres away from the the village of Palma on the Afungi Peninsula. Rovuma LNG, led by ExxonMobil (US) – join
site of Mozambique LNG’s Mozambique’s armed forces, known as Forças Mozambique LNG in developing the country’s
onshore complex. Armadas de Defesa de Moçambique (FADM), offshore fields and turning the country into an
have retaliated, but the outcome of the battle has exporter of gas. Together, these three projects
WHY: not yet been decided. will require investments of $50bn or more. They
The Islamist group is now The human cost of ASWJ’s latest campaign is will generate billions of dollars in revenue for the
openly targeting the gas sure to be steep. According to press reports, doz- government, and they are likely to create thou-
project, according to a ens of people have been killed, and thousands sands of jobs. (Some of these jobs will emerge
Mozambican Defence
Ministry spokesman. have fled the area. directly, through the hiring of local workers and
Unfortunately, the violence is not likely to the contracting of local service firms, and some
WHAT NEXT: end any time soon. Even if FADM manages to will emerge indirectly, through the local busi-
Since attacks on gas retake the town relatively quickly – and its abil- nesses that are likely to spring up to serve those
facilities attract attention, ity to accomplish this is not assured – ASWJ involved in gas production, transportation and
ASWJ is likely to step up has already achieved one of its goals. That is, processing.)
its campaign in the near it has succeeded in causing further problems
future. for Mozambique LNG, the consortium led by Human and political costs
Total (France) that is trying to build a natural As such, the stakes are high – and they have been
gas liquefaction plant just a few kilometres out- for some time, even if one ignores the vast sums
side Palma within the framework of a wider of money involved in the gas projects.

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