Page 7 - GLNG Week 35 2021

GLNG AFRICA GLNG

AfDB president hopes work on Mozambique

LNG will resume in 12-18 months

PROJECTS & AKINWUMI Adesina, the president of the Mozambique are sufficiently improved, but it has
COMPANIES African Development Bank (AfDB), has said not said exactly when that might happen. Reuters
he believes that TotalEnergies (France) will be asked the French company to comment on Ades-
able to resume work on the Mozambique LNG ina’s remarks last week, but it declined to do so.
in about 12-18 months. Speculation about a restart of the Mozam-
Adesina indicated last week that he expected bique LNG project began rising a few weeks
security conditions in Cabo Delgado, Mozam- ago, after Mozambican and Rwandan troops
bique’s northernmost province, to improve fol- regained control of Mocimboa da Praia, a port
lowing the deployment of troops from Rwanda in Cabo Delgado that was seized by ASWJ in
and from member states of the Southern Afri- August 2020. Mozambique’s Minister of Min-
can Development Community (SADC). With eral Resources and Energy Max Tonela said last
security threats eliminated, he said, the French month that he hoped these successes marked a
company and its partners will be in a position to step in the right direction.
finish building their gas liquefaction plant on the When asked whether this development might
Afungi Peninsula. prompt TotalEnergies and its partners to resume
“The return of security in that place will work on the Afungi Peninsula, Tonela struck a
give assurances to [TotalEnergies] and others note of cautious optimism. Construction can
to return,” he told Reuters. “In one year to 18 only be restarted if the area is made secure again, Construction can
months, I expect it to be stabilised enough to get but the consortium is committed to moving
back on track.” ahead with its investments in Mozambique, he only be restarted
He added: “Without security, you can’t have said.
investment and you can’t have development.” TotalEnergies is the operator of the Mozam- if the area is
The AfDB president went on to say that he bique LNG consortium, and its subsidiary Total
did not believe the suspension of work on the E&P Mozambique Area 1 has a 26.5% stake in made secure
Mozambique LNG plan would have a negative the project. The remaining equity is divided again, but the
effect on the project’s long-term economic via- between two Japanese companies, Mitsui and
bility. He also expressed understanding of the Japan Oil, Gas and Metals National Corp. (JOG- consortium is
French major’s decision to declare force majeure MEC), which have a combined stake of 20%;
and suspend work at the site of its LNG plant Mozambique’s national oil company (NOC) committed to
earlier this year, noting that the project had been ENH, with 15%; Bharat Petroleum (India), with
facing serious threats because of attacks by an 10%; ONGC Videsh Ltd (OVL) (India), with moving ahead.
Islamist group known as Ahlu Sunnah Wah- 10%; Beas Rovuma Energy Mozambique (a
Jamo (ASWJ). 60:40 joint venture between OVL and Oil India
“It gave us real concern when Total declared Ltd, or OIL), with 10%; and PTTEP (Thailand),
force majeure and they had to move out,” he with 8.5%.
commented. “But you can understand because The partners aim to extract gas from Area 1,
of the insecurity situation.” which lies offshore within the Rovuma basin,
TotalEnergies has stated that it intends to and use it as feedstock for the LNG plant. This
resume work on the Mozambique LNG pro- facility will eventually have two production
ject once security conditions in northern trains, each with a capacity of 6.44mn tpy.™

Week 35 03•September•2021 www. NEWSBASE .com P7