Page 12 - DMEA Week 05 2022

DMEA TERMINALS & SHIPPING DMEA

TotalEnergies CEO keen to resume

work on Mozambique LNG project

AFRICA PATRICK Pouyanné, the CEO of TotalEnergies suspended since late March of last year, when
(France), has said he hopes to see work on the TotalEnergies declared force majeure in
$20bn Mozambique LNG project resume before response to deteriorating security conditions in
the end of this year. Cabo Delgado.
Speaking to reporters during a visit to The French major is leading the Mozam-
Maputo on January 31, Pouyanné stressed that bique LNG consortium through its subsidiary
the French major was still waiting for security Total E&P Mozambique Area 1, which holds a
conditions to improve in the northern prov- 26.5% stake. Meanwhile, remaining equity in
ince of Cabo Delgado, where the Mozambique the project is split between two Japanese com-
LNG consortium has already begun building its panies, Mitsui and Japan Oil, Gas and Metals
onshore complex. National Corp. (JOGMEC), which have a com-
“When I will see that life is back to normal- bined stake of 20%; Mozambique’s national oil
ity, which means having some state services and company (NOC) ENH, with 15%; Bharat Petro-
population, then the project can restart,” Reuters leum (India), with 10%; ONGC Videsh Ltd
quoted him as saying. “My objective is that we (OVL) (India), with 10%; Beas Rovuma Energy
will restart in 2022.” Mozambique (a 60:40 joint venture between
He stopped short of committing to any spe- OVL and Oil India Ltd, or OIL), with 10%; and
cific dates, saying that more work needed to be PTTEP (Thailand), with 8.5%.
done to consolidate the gains that have been The partners aim to extract gas from Area
made in areas seized last March by members of 1, which lies offshore Mozambique within the
Ahlu Sunna Wa-Jamo (ASWJ), a separatist Isla- Rovuma basin. They will process the gas at the
mist group with ties to Islamic State (Daesh). But LNG plant on the Afungi Peninsula. The facility
he also hailed the steps that have been taken to will eventually have two production trains, each
date, saying: “A lot of progress has been done and with a capacity of 6.44mn tonnes per year (tpy).
frankly in a very short period of time.”
Pouyanné was likely referring to the Downstream expansion
ramp-down in fighting in Cabo Delgado. The Also on January 31, TotalEnergies announced
insurgency has abated since Mozambique’s plans to expand its downstream business in
government accepted help in the form of troop Mozambique by acquiring a package of assets
deployments from Rwanda and member states from BP (UK). The assets in question include 26
of the Southern African Development Commu- retail filling stations, a wholesale fuel business
nity (SADC). that has a portfolio of business customers and a
The TotalEnergies CEO was speaking after 50% stake in Samcol, the logistics company that
signing an agreement that will allow TotalEner- operates the Beira, Matola and Nacala petroleum
gies to provide 2,500 young Mozambicans with product import terminals. The French major
training in skills that they can use to provide already owns the other half of Samcol, so the deal
services for the Mozambique LNG project, such will boost its stake to 100%.
as the growing of vegetables for food that can be The value of the acquisition, which will make
sold to gas workers. TotalEnergies the leading retail petroleum
The Mozambique LNG consortium and its product seller in Mozambique, has not yet been
contractors and sub-contractors had hoped to disclosed. TotalEnergies is already active in the
create thousands of new jobs in Cabo Delgado, Mozambican downstream market, where it
especially in the vicinity of the LNG plant and operates 57 filling stations and has its own active
onshore facilities on the Afungi Peninsula. portfolio of business customers.
However, hundreds of thousands of the prov- “This agreement reflects TotalEnergies’ will-
ince’s residents became refugees last year because ingness to pursue its investments in Mozam-
of ASWJ offensives, and some towns in Cabo bique’s energy sector in order to deploy our
Delgado are still virtually abandoned, with no multi-energy strategy in the country through
access to public services. retailing of petroleum products for mobility, the
Pouyanné said on January 31 that he would major Mozambique LNG project and accompa-
like to visit some of the hardest hit sites, includ- nying supply of domestic gas, and opportunities
ing the port of Mocimboa da Praia and Palma, under review in the area of renewable energies,”
the town closest to the LNG plant, the next time Pouyanné said, hailing the acquisition deal.
he visited Mozambique. He did not say when “Our ambition with all this is to contribute to
such a visit might occur. the country’s sustainable development and give
Work at the construction site has been access to energy to as many people as possible.”™

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