Total Edges Closer to Restart Work on $20 Billion Mozambique LNG

(Bloomberg) -- Companies hired by TotalEnergies SE to build a $20 billion gas project in northern Mozambique have started preparing to resume work on the venture, four years after it was suspended because of a militant insurgency, according to people familiar with the matter.

Firms have taken preliminary steps, including deploying resources to the project site, said two of the people, who asked not to be identified because the information is confidential. A Total representative declined to comment.

The French oil major sent a letter earlier this week along with a so-called notice to proceed with site preparation to companies including Portuguese builder Mota-Engil SGPS SA, which won a $365 million contract with Belgian construction firm Besix Group SA in 2020 to build marine facilities for the project, according to one of the people. Another said discussions have started between contractors and sub-contractors about returning.   

Mozambique LNG, located in the Cabo Delgado province, is seen as crucial to the future development of the southern African nation, which ranks among the world’s poorest. Total halted work, evacuated workers and declared force majeure in 2021 after an escalation in attacks by Islamic State-linked militants.

The plant will liquefy and export the extensive gas reserves off northeast Mozambique that were discovered 15 years ago. Mozambican President Daniel Chapo earlier this week said his government and private companies will have to collectively ensure the necessary security is in place to enable the restart.

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