The government of Mozambique and French oil and gas group, Total, have announced that construction work is due to resume on the natural gas liquefaction plants on the Afungi Peninsula, in the northern province of Cabo Delgado.
The project is run by a consortium led by Total, but work stopped in the region towards the end of December last year because of increasing security threats which led to workers being evacuated from the vicinity.
Since then, the government and Total have been working on tightening security around the site and the neighbouring villages. The resolutions include increasing the size of the contingent of the Mozambican defence and security forces at Afungi. The special security area covers the zone within a 25-kilometre perimeter around the LNG project.
A release from the Mozambican Ministry of Mineral resources and Energy stated that:
“The Government has declared the area of the Mozambique LNG Project as a special security zone.”
“A road map has been drawn up with measures and actions seeking to restore and strengthen security.”
“[Control over the Afungi special security area] continues to be guaranteed exclusively by the public security forces under the Memorandum of Understanding signed between the government and Total.”
Commenting on the return of activities, Total said: “The Government of Mozambique is committed that the personnel assigned to the protection of Mozambique LNG shall act according to the Voluntary Principles on Security and Human Rights (VPSHR) and international human rights standards.”
“[The project] does not use the services of any armed private security suppliers.”
“Mozambique LNG has satisfied all the conditions precedent and complied with all relevant statutory requirements for the first debt drawdown of the project financing signed on 15th July 2020 with eight export credit agencies, 19 commercial banks and the African Development Bank. This first drawdown will take place at the beginning of April 2021.”
The project is still on track to deliver its first shipment of LNG in 2024. Total is the operator with a 26.5% interest, Japan’s Mitsui holds a 20% interest, Mozambique’s National Hydrocarbon Company, ENH, holds a 15% interest, Thailand’s PTTEP holds an 8.5% interest, and the three Indian companies: ONGC Videsh, Beas Rovuma energy and BRPL Ventures hold 10% each.
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