{"id":26893,"date":"2022-09-25T16:35:59","date_gmt":"2022-09-25T16:35:59","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/all-news\/mozambique-expects-decision-by-march-on-20-billion-gas-project-restart-2"},"modified":"2022-09-25T16:46:17","modified_gmt":"2022-09-25T16:46:17","slug":"mozambique-expects-decision-by-march-on-20-billion-gas-project-restart-2","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/mozambique-expects-decision-by-march-on-20-billion-gas-project-restart-2","title":{"rendered":"Mozambique expects decision by March on $20 billion gas project restart"},"content":{"rendered":"

Africa-Press – Mozambique. <\/strong><\/span>Mozambique\u2019s Finance Minister Max Tonela is \u201cvery optimistic\u201d that TotalEnergies SE will make a decision by March to resume work on its $20 billion liquefied natural gas export project that Islamic State-linked violence put on hold.<\/p>\n

\u201cWhat Total has required is a long-term security assurance\u201d and the government thinks the necessary conditions are in place, Tonela said in a Sept. 16 interview in Maputo, the southeast African nation\u2019s capital. \u201cOf course, they have to analyse and take a decision on their own.\u201d<\/p>\n

The Paris-based energy company evacuated all employees and declared force majeure on the development \u2014 one of Africa\u2019s biggest private investments yet \u2014 after a major attack in March last year on the town of Palma that\u2019s less than 10 kilometres (6.2 miles) away. While the arrival of troops from Rwanda and a regional bloc more than a year ago helped to beat back the insurgency, small-scale violence has continued in areas further away from the LNG project site on Mozambique\u2019s northern coast.<\/p>\n

The project could transform Mozambique\u2019s $16 billion economy \u2014 the world\u2019s third-poorest country measured by per-capita income \u2014 and offers an alternative gas source to European nations scrambling for supplies after Russia\u2019s invasion of Ukraine. But it\u2019s situated in an area where violence that started in 2017 has left at least 4,200 people dead and prompted nearly 1 million to flee their homes.<\/p>\n

TotalEnergies said in June it would return to the site once it\u2019s satisfied the northern Cabo Delgado province is secure. Further work needs to be done, including the restoration of government services in key towns hit by the conflict, Stephane Le Galles, the company\u2019s director for the project, said at a conference in Maputo last week, adding \u201cthe direction is good.\u201d<\/p>\n

Tonela is \u201cnot so optimistic\u201d that ExxonMobil Corp., which has an onshore gas export project that\u2019s adjacent to TotalEnergies\u2019s and is even bigger, will reach a long-awaited final investment decision in the near-term. Development plans for that project are being revised, including to allow for potential carbon capture and storage in the future.<\/p>\n

Asked if he expected a final decision next year, Tonela said: \u201cIt\u2019s not easy to assume.\u201d<\/p>\n

First Shipments<\/b><\/p>\n

ExxonMobil continues to monitor the situation and timing of the project will be dependent on achieving a sustainable secure environment, Jos Evens, chairman of its local unit, said in a speech last week.<\/p>\n

Eni SpA, the Italian oil and gas producer that operates the offshore project components in ExxonMobil\u2019s consortium, is preparing to ship the first LNG cargo from a floating platform off Mozambique\u2019s northern coastline. That should happen by the end of October, the minister said.<\/p>\n

A second such facility that Eni is planning would be positive for Mozambique, according to Tonela, who was energy minister before being appointed to his current role in March.<\/p>\n

\u201cThere will be no contradiction\u201d between pushing ahead with a second floating natural gas production platform as well as the bigger onshore development, Tonela said. \u201cWe do have enough gas to allow both projects to go ahead.\u201d<\/p>\n

Mozambique\u2019s economy will probably expand by about 5% this year versus a previous forecast of 2.9%, thanks to better performance from the tourism, extractive and agriculture industries, he said.<\/p>\n

By<\/b> Matthew Hill<\/p>\n

For More News And Analysis About Mozambique<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mozambique. Mozambique\u2019s Finance Minister Max Tonela is \u201cvery optimistic\u201d that TotalEnergies SE will make a decision by March to resume work on its $20 billion liquefied natural gas export project that Islamic State-linked violence put on hold. \u201cWhat Total has required is a long-term security assurance\u201d and the government thinks the necessary conditions […]<\/p>\n","protected":false},"author":84,"featured_media":26892,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[233,281,283],"class_list":["post-26893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"\nMozambique expects decision by March on $20 billion gas project restart - Mozambique<\/title>\n<meta name=\"description\" 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