Mozambique LNG project : Mozambican govt to provide security amid terror threats

Total said that it has signed a new memorandum of understanding (MoU) with the Mozambican government to provide security for the $20-24 billion Mozambique LNG project in the country in the wake of terror threats.

The French oil and gas giant, which is the operator of the LNG project through its subsidiary Total E&P Mozambique Area 1, said that under the MoU, the Mozambican government has committed to providing a joint task force to ensure the security of the activities of the Mozambique LNG project in Afungi site and across the wider area of operations of the project.

The partners in the Mozambique Area 1 LNG project will be responsible for giving logistic support to the joint task force.

Ronan Bescond – Country Chair of Total in Mozambique said: “In recognition of the benefits the Mozambique LNG project will bring to local communities, the country, and all parties involved in the project, Total and the Government of Mozambique are committed to enable steady progress towards a successful delivery of the project.

“In view of the security situation in the Province of Cabo Delgado, our priority is to ensure the security of our workforce, many of whom residing in neighboring communities, and of the project operations. On behalf of our Area 1 partners, we appreciate the support provided by the Government of Mozambique for the secure delivery of the project.”

According to Total, the MoU demonstrates the commitment of the integrated LNG project in meeting its milestones in a secure way, while generating local opportunities and driving considerable social and economic benefits for the Cabo Delgado province and the African country.

Map showing the Mozambique LNG project. Image courtesy of Total.

Ernesto Max Elias Tonela – Mozambican Minister of Mineral Resources and Energy said: “We are proud to continue working with the Mozambique LNG project to ensure the country benefits from its presence. This Memorandum of Understanding bolsters security measures and endeavors to create a safe operating environment for partners like Total which enables their ongoing investment in Mozambican industry, for small and medium enterprise and for our communities.”

The Mozambique LNG project is the first onshore LNG development in Mozambique. It calls for the development of the Golfinho and Atum fields contained within Offshore Area 1 to unlock more than 60 Tcf of gas resources and the construction of a liquefaction plant with two trains that will have a capacity of 13.1 million tonnes per year.

Total holds a 26.5% stake in the Mozambique LNG project and is partnered by ENH Rovuma Área (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh Rovuma (10%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%), and PTTEP Mozambique Area 1 (8.5%).

Earlier this month, the onshore LNG project in Mozambique secured a financing commitment of $400 million from the African Export-Import Bank (Afreximbank).