Mozambican President Daniel Chapo has indicated that TotalEnergies SE’s $20 billion liquefied natural gas (LNG) development could resume operations as early as this month, in a move that may restore a critical revenue stream for the financially challenged nation, Bloomberg reported.
Speaking in Abu Dhabi on Wednesday, Chapo noted there are early indications of renewed construction activity at the project site, which has remained idle since 2021 following attacks by insurgents in the area.
Last October, TotalEnergies SE said that the company and its partners will end force majeure on their project in Mozambique. The announcement indicated the restart of operation on the export terminal after four years of suspension.
Despite these optimistic signals, the outcome of current negotiations remains uncertain. TotalEnergies is reportedly seeking a 10-year extension of its Mozambique LNG project production agreement from the government, as well as approval for a revised project budget that would see costs rise to $24.5 billion. These requests are designed to offset lengthy delays brought on by ongoing insurgency, with the company targeting a return to full-scale construction and initial LNG shipments by 2029, according to sources cited by Bloomberg.
Thailand’s PTT Exploration and Production Public Company Limited (SET: PTTEP), through its subsidiary PTTEP International Limited, has an 8.5% working interest in the Mozambique LNG project.
