25 Aug Total signs security pact with Mozambique for $20 billion LNG project
Total yesterday announced that a security pact has been signed with the Mozambique government to protect a US$20 billion liquified natural gas (LNG) project in the Southern African country.
Government security forces have been engaged in a low-level insurgency against militias suspected of having links to Islamic State in the gas-rich Northern areas of Mozambique.
In recent months, dozens have been killed in the Cabo Delgado region, and earlier this month insurgents captured a heavily-defended port in the far Northern town of Mocimboa da Praia.
Cabo Delgado is the closest province to Total’s large-scale offshore project, which includes the development of the Golfinho and Atum natural gas fields in the Offshore Area 1 concession.
The concession contains more than 60 trillion cubic feet (Tcf) of gas, with initial production slated for 2024. Last month, the French energy major secured up to $16 billion in funding for the project, despite of deteriorating supply and demand dynamics in the LNG space.
“This [pact] bolsters security measures and endeavours to create a safe operating environment for partners like Total which enables their ongoing investment in Mozambican industry,” Ernesto Elias Tonela, minister of mineral resources and energy, said in the statement.