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Mozambique LNG unlikely to start commercial operations before 2027

TotalEnergies’ LNG export facility in Mozambique is unlikely to start operations until 2027 at the earliest, even if the force majeure on construction work is lifted and work resumed as announced by its EPC contractor Saipam, last fortnight.  

“From the time we restart to production, we need another four years to build the facility,” Stephane Le Galles, project director at TotalEnergies, told Bloomberg while on a visit to the construction site in northeastern Mozambique.

Exports from the plant could start “2027 at the best,” Le Galles added.

The liquefaction project had declared force majeure in April 2021, following violence in north of Cabo Delgado province- near the project site.  Saipam, which is a joint venture partner in CCS JV for Mozambique LNG, confirmed last fortnight that the work will be resumed from July. CEO of Saipem Alessandro Puliti said during the conference call on Saipem results that it expects to gradually restart the Mozambique LNG project as per the information received by their clients.

CCS JV partners includes Chioda Corporation and McDermott. CCS JV has been contracted by Total for Mozambique Area 1 for EPC of the liquefaction project on the Afungi peninsula in Cabo Delgado province, Mozambique.

Patrick Pouyanné, Chairman and CEO of TotalEnergies had visited the Cabo Delgado province of Mozambique late in January to review the security and humanitarian situation. He visited the Afungi industrial site, the resettlement village of Quitunda, the towns of Palma and Mocimboa da Praia and met with President Filipe Nyusi to discuss the security and humanitarian situation in Cabo Delgado province, where the Mozambique LNG project is located. [email protected]