Africa Monitor

Africa Monitor Intelligence

Mozambique: Opposite Strides for Offshore and Onshore LNG Projects

The existence of shared facilities and services makes Rovuma LNG dependent on the Mozambique LNG project, in charge of Area 1. Construction of the Afungi LNG complex which includes the village of Quitunda (population resettlement), maritime facilities and storage areas , the construction of a residential area with 9,500 beds, the LNG modules, and the set of associated infrastructures (airport, motorway), have been suspended since MAR. in the north of Cabo Delgado, especially Palma, after Total claimed “force majeure”.

The volatility of the security situation continues to jeopardize the development of the Area 1 project in Palma, which could lead to a further postponement of the resumption of works. According to industry sources, the probability of the stoppage of LNG Mozambique until the end of 2022 is high, with the persistence of the security justifications implicit in the “reasons of force majeure” alleged by Total. This scenario goes against Total's recent intentions, which considered it possible to resume the project in the 2nd half of 2022. READ MORE