Mitsui & Co., in collaboration with TotalEnergiesand the government of Mozambique, is gearing up to resume construction on the $20 billion Mozambique LNG project.
Halted since 2021 due to violent unrest in Cabo Delgado province, the project is now set to move forward following notable improvements in regional security.
Mitsui’s CEO, Kenichi Hori, confirmed that the company is working closely with TotalEnergies and Mozambican authorities to finalize plans and ensure safety as preparations progress.
The Mozambique LNG project is crucial for the nation’s economy, focusing on the development of extensive natural gas reserves off its northern coast.
The project includes a liquefaction plant at the Afungi complex, designed to produce LNG for export. TotalEnergies has reconfirmed financing for 70% to 80% of the $14 billion required, paving the way for construction to resume.
In April 2021, TotalEnergies declared force majeure on the project due to escalating violence, leading to a complete site evacuation.
However, strengthened security measures, including a partnership between Mozambique and Rwanda to combat insurgency, have renewed optimism.
Hori stated that while some critical milestones remain, preparations for restarting construction are in their final stages.
The production timeline has shifted as well. TotalEnergies CEO Patrick Pouyanne revealed that if work resumes by late 2024, LNG production could begin by 2029.
The adjustment reflects not only security-related delays but also rising costs. Although engineering and construction expenses have increased, Pouyanne reassured stakeholders of the project’s profitability and TotalEnergies’ commitment to its completion.
As part of the next steps, TotalEnergies plans to engage Mozambique’s newly elected president. These discussions will focus on the administration’s approach to sustaining security partnerships and supporting the LNG project.
The election outcome could play a critical role in shaping future investments and operational timelines.
Despite this progress, significant challenges remain. Local communities have voiced concerns about the lack of tangible benefits from the project.
Displacement of residents to make way for construction has fueled dissatisfaction and raised ethical questions about resource extraction practices.
Ensuring that local populations share in the project’s prosperity is an ongoing issue that requires urgent attention.
Additionally, global attitudes towards fossil fuel financing present uncertainties. Some financiers remain cautious due to shifting energy priorities driven by climate change concerns.
Balancing the economic potential of the project with evolving energy investment trends will be vital for its success.
Addressing social responsibility, community engagement, and global climate concerns will be critical to ensuring that the project achieves its economic promise while fostering sustainable development for the region.
By navigating these challenges effectively, Mozambique can unlock the full potential of its natural resources to benefit its citizens and the global energy market.
