Maputo, 29 Jan (AIM) – The French oil and gas company TotalEnergies, which heads the liquefied natural gas (LNG) consortium, in Palma district, in the northern Mozambican province of Cabo Delgado, hope to resume activity in the near future.
Mozambican President Daniel Chapo, through a post on his X (formerly Twitter) account, announced that he held a meeting last Monday in Maputo with the Chairperson of the Board of TotalEnergies, Patrick Pouyanné.
“We discussed progress and the commitment of the company to develop the LNG project in Cabo Delgado”, said Chapo.
He added that, during their discussion, Pouyanné reaffirmed the commitment of TotalEnergies to resume the project. Work has been suspended since April 2021, when the French company declared force majeure, following a major terrorist attack against the town of Palma.
Security conditions in Palma have improved considerably, but the terrorists are still active elsewhere in Cabo Delgado, notably along the E380 road that connects the northern and southern districts of the province.
“For our part”, said Chapo, “we reaffirmed the importance of the project for the economic growth of Mozambique, and so efforts are under way seeking to guarantee the stability necessary for its implementation”.
Known simply as the Mozambique LNG project, it is budgeted at around 20 billion US dollars, making it the largest foreign investment project in sub-Saharan Africa.
Fresh negotiations with the Mozambique LNG consortium, not only because of security concerns, but because of what are delicately referred to as “contractual adjutsments”, may be required.
(AIM)
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