Page 10 - GLNG Week 33

GLNG COMMENTARY GLNG

As of press time, neither Total nor the other They have already established robust security
IOCs involved in Mozambican gas projects had protocols for the plant, but they may want to start
commented publicly on the takeover of Mocim- providing more protection for employees and
boa da Praia. As such, it was not clear whether contractors who are away from the work site. The
recent events had affected the pace of work on rebels have already staged attacks on Mozam-
Mozambique LNG’s liquefaction plant. bique LNG’s contractors. In the most recent
incident, eight employees of Fenix Construction
Challenges ahead Services, a local company that has contributed to
Nevertheless, there is likely to be more trouble the project, died after gunmen ambushed one of These
ahead. ASWJ, which attacked and occupied its vehicles near Mocimboa da Praia.
Mocimboa da Praia briefly earlier this year, is considerations
not likely to retreat any time soon. Nor is FDS Risk and reward are not likely to
likely to give up, even if it struggles to re-establish These considerations are not likely to derail
government control in northern Mozambique. the project – or discourage investors in other derail the project
In the meantime, as long as the fighting con- ongoing Mozambican LNG schemes. As Ed
tinues, Total and its partners will have diffi- Hobey-Hamsher, Verisk Maplecroft’s senior – or discourage
culty accessing the port they have been using to Africa analyst, told Africa Oil Week in late July,
import the supplies they need to build its LNG the security risks are not high enough to out- investors in
plant. They may have to make new arrangements weigh the potential for profit. other ongoing
for supply shipments if the militants retain con- Nevertheless, they could force Total and other
trol of Mocimboa da Praia – or if port facilities IOCs to postpone work on their projects. More- Mozambican LNG
are damaged in fighting between the militants over, the delays might turn out to be longer than
and FDS. In either case, they might have to expected if conflict between ASWJ and FDS schemes.
revise their work schedule, which has already grinds on – or if it escalates.
been affected by incidents such as the coronavi- And it may indeed escalate. “The complic-
rus (COVID-19) outbreak that hit Total’s work ity of state officials in criminal activities in
camp earlier this year. Mozambique increases the likelihood that
Additionally, the investors may have to review the ASWJ will eventually secure the weapons
security arrangements in order to protect the necessary for attacks on onshore LNG sites,”
employees and prevent disruption to the project. Hobey-Hamsher said.™

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