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FILIPE NYUSI SAYS TOTALENERGIES CAN SAFELY RESUME $20B LNG PROJECT





LNG, Oil & Gas


FILIPE NYUSI SAYS TOTALENERGIES CAN SAFELY RESUME $20B LNG PROJECT

27/04/2023


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Mozambique’s President Filipe Nyusi on Wednesday said it was safe for
TotalEnergies to restart its Cabo Delgado liquefied
natural gas (LNG) project that was halted in 2021 following insurgent attacks on
civilians.

The issue was given great prominence on Wednesday (26), in the speech by the
President of the Republic, Filipe Nyusi, as part of the opening of the 9th
edition of the Mozambique Mining and Energy Conference and Exhibition (MMEC).

a d v e r t i s e m e n t
 



An Islamic State-linked insurgency in the northern Mozambican province has
claimed thousands of lives since it broke out in 2017, disrupting
multi-billion-dollar investments, including the $20-billion LNG project in which
TotalEnergies has a 26.5% stake.

Nyusi said that Mozambique wanted to take advantage of the current high prices
of LNG and the global shift towards cleaner sources of energy.

“The working environment and security in northern Mozambique makes it possible
for Total to resume its activities any time,” Nyusi said.

TotalEnergies was not immediately available to comment, but in February it said
the situation in Cabo Delgado had “improved significantly” after African
countries deployed troops to help Mozambique’s security forces deal with the
insurgency in 2021.

The energy major’s Chairman and Chief Executive Patrick Pouyanne visited
Mozambique two months ago to meet Nyusi and review the security and humanitarian
situation in Cabo Delgado.

After Pouyanne’s visit, TotalEnergies announced the appointment
of Jean-Christophe Rufin, who it said was an expert in humanitarian action and
human rights, to independently assess the situation in Cabo Delgado province.

This assessment would help TotalEnergies and its partners decide if conditions
were right to resume the project. 

According to Filipe Nyusi, the gas projects underway in the north are of great
importance and place the country on the roster of global gas value chains, which
gives greater visibility and openness for development, especially since the
first shipment of LNG by Coral Sul has already been made.

Outside of gas projects, the head of state revealed in his speech that the
extractive industry has seen significant growth, rising from 1.8 percent of
Gross Domestic Product (GDP) in 2011 to close to 10.6 percent in 2022.

“This rise reflects the development of the Moatize coal project in Tete, the
Moma, Pebane and Chibuto heavy sands projects in the provinces of Nampula,
Zambézia and Gaza, notwithstanding the ruby and graphite projects being
developed in Cabo Delgado,” he explained.

The extractive sector primarily impacts on exports and on the network of Small
and Medium Enterprises (SMEs) that supply goods and services. “The value chain
network includes more than 151,000 traders of which 42% are women,” he added.

“The extractive sector has influenced the increase in exports and external
balance as well as the strengthening of foreign exchange reserves, job creation,
diversification of the economy, capturing tax revenues, improving the balance of
public accounts and energy generation,” he detailed.

See Also
LNG

MOZAMBIQUE LNG EXPORTS TO START IN OCTOBER



As a way of safeguarding resources, the President said that recently mechanisms
had been created to combat the smuggling of minerals, such as gold and gems.

On the other hand, specifically regarding the conference, the statesman said
that the sustainable exploration of resources should be promoted in a way that
benefits the State, investors, communities and the national business community.

“We should bring a human face to the extractive industry so that the benefits
are tangible,” he stressed.

In the same vein, the Head of State revealed that Mozambique is in the process
of joining two major international bodies, namely: the Green Economy Financing
Facility (GEFF) and the African Petroleum Producers Organization (APPO), in
order to ensure an open, transparent and responsible management of mineral
resources.

GEFF is a funding line generally aimed at low-income countries and APPO is a
means of cooperation and harmonisation of collaboration and knowledge sharing
among African oil producing countries.

The conference organised by the Ministry of Mining Resources and Energy (MIREME)
through the National Hydrocarbons Company (ENH), in partnership with AME
Mozambique and AMETrade, is being held in Maputo, under the theme “Using
Mozambique’s natural resources for transformative and sustainable economic
development”, and will last for two days (26 and 27), where it will bring
together leaders, businessmen and experts in the extractive and oil and gas
fields.


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Cabo Delgado Filipe Nyusi headline LNG totalEnergies

Bárbara Henriques 27/04/2023
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