Africa Monitor Intelligence
Mozambique: Postponement and Cancellation of LNG Projects Gains Strength
The evolution of the international economic situation, as a result of the Covid-19 pandemic, is jeopardizing the initially expected scenario of a growth in global LNG demand, exceeding the supply - from 2024-2025 to 2028-2029 - supporting the re-scheduling decision and even canceling several projects in the sector.
In the Palma complex, Area 1 (led by Total) and Area 4 (led by ExxonMobil, Eni and CNPC, and participated by GALP, KOGAS and Empresa Nacional de Hidrocarbonetos) are subject to different pressures in the respective investment calendar.
Area 1 Mozambique LNG, previously led by Anadarko, and now by Total, has already signed the final investment decision (FID) in 2019, as well as contracts with clients, being limited in the margin for eventual reformulation of the project.
Area 4 Rovuma LNG, on the contrary, has not yet formalized the FID and maintains the margin of decision to adapt to the new circumstances of the international LNG market. READ MORE