Mozambique’s government has indicated it may challenge parts of TotalEnergies’ revised budget and timeline for the country’s massive liquefied natural gas (LNG) project, which has faced years of delay due to security concerns.
President Daniel Chapo said the government will carefully review the French energy company’s updated proposal, which includes a request to extend the development and production period by 10 years and an increase of $4.5 billion to the project’s original budget. The cost surge stems from a four-year suspension following a 2021 Islamist militant attack that halted operations in northern Mozambique.
“We need to thoroughly examine the justification for this extension,” Chapo said, noting that the government could present “counter-arguments” both on the proposed timeline and on the cost adjustments. His remarks, recorded during a press briefing, were shared by his spokesperson.
TotalEnergies has not yet commented on the government’s stance. The company’s CEO, Patrick Pouyanné, told investors on Thursday that the consortium behind the Mozambique LNG venture is prepared to restart operations soon, now estimating the project’s total cost at around $20.5 billion.
Currently, the LNG development is about 40% complete. However, sporadic insurgent attacks continue to pose challenges despite a recent security agreement between Mozambique and Rwanda, whose forces are helping stabilize the gas-rich Cabo Delgado region.
In addition to TotalEnergies’ project, U.S. energy giant ExxonMobil is developing a separate LNG venture nearby, underscoring Mozambique’s ambitions to become one of Africa’s leading natural gas exporters.
Source:Africa Publicity
