TotalEnergies, a French energy company, announced on Tuesday that it would restart its Mozambique LNG project once the recommendations in a commissioned human rights report were implemented.
“At this time, there is no date for a restart,” according to TotalEnergies, despite the fact that “the project partners take note of the report and note the security improvements on the ground.”
The findings of the report were used to develop a strategy, which is now being implemented.
TotalEnergies’ 26.5% stake in the liquefied natural gas project in Mozambique’s northern Cabo Delgado province was put on hold in 2021 after civilians were attacked by insurgents with ties to the Islamic State.
While armed conflict is likely to continue, the danger zones have moved south and west of the Mozambique LNG site, according to a report commissioned from humanitarian action expert Jean-Christophe Rufin.
The action plan, which Rufin will be in charge of implementing, calls for displaced families to be compensated by July, new houses to be built by the end of the summer, increased access to fishing, new negotiations with security forces, and the establishment of a foundation with a multiyear budget of $200 million to improve local life.
TotalEnergies CEO Patrick Pouyanné stated last month that renegotiating costs with local contractors was the final step before resuming operations, and energy services company Saipem stated that TotalEnergies had notified it to prepare for a gradual restart of the project beginning in July.
The first LNG cargo from Mozambique LNG was scheduled to arrive in 2024, with an annual output of 43 million tonnes of gas.
The project’s other shareholders include ENH of Mozambique, Mitsui & Co. of Japan, PTTEP of Thailand, and ONGC Videsh, Bharat Petroleum, and Oil India Ltd. of India.
