News|Oil and GasTotalEnergies restarts $20bn LNG project in Mozambique after 5-year freezeOperations were paused indefinitely in 2021 due to escalating violence in the region.
TotalEnergies has recommenced the construction of a $20 billion liquefied natural gas (LNG) project in Mozambique. The project, located in the Cabo Delgado province, was previously halted due to regional violence.
TotalEnergies has recommenced the construction of a $20 billion liquefied natural gas (LNG) project in Mozambique. The project, located in the Cabo Delgado province, was previously halted due to regional violence.
The LNG project is anticipated to produce over 13 million tonnes annually, with operations expected to begin in 2029. The project may generate up to $35 billion for Mozambique through taxes, oil profits, and other contributions over its lifetime.
TotalEnergies estimates significant economic benefits, including the creation of approximately 7,000 direct jobs during construction. Local companies are expected to receive contracts worth more than $4 billion.
Improved security in Cabo Delgado, aided by the deployment of Rwandan soldiers, has facilitated the project's relaunch. However, delays have necessitated renegotiations of terms among project stakeholders.
TotalEnergies has recommenced the construction of a $20 billion liquefied natural gas (LNG) project in Mozambique.
Environmental and human rights organizations have criticized the project, citing minimal local benefits and significant climate impacts. TotalEnergies faces legal challenges in France, including a manslaughter investigation and accusations of complicity in war crimes.
TotalEnergies has denied all allegations against it.
Last month, the United Kingdom government announced the withdrawal of $1.15 billion in export finance from the project.
Based on reporting by Al Jazeera.
