The consortium of Area 1 of Mozambique said that the works for the export of natural gas are to start in 2024, a source of the group told Lusa on Wednesday (March 4), a year after winning enough customers to sustain the venture.
“The Mozambique LNG Project, led by Total, is progressing well and on track to deliver the first shipment of LNG [liquefied natural gas] in 2024,” said the company’s source.
In February 2019, the consortium announced it had signed enough volume of contracts to make the final investment decision, which would eventually happen four months later.
“The Mozambique LNG project signed eight long-term CCV (purchase and sale contracts) with 10 clients for a total volume of more than 11.1 mtpa [million tonnes of LNG per year],” the source added.
The exploitation of natural gas resources off the northern coast of Mozambique has the potential to take the country out of the group of poorest countries in the world.
While the Area 1 project will extract the gas at sea and process it on land in the Afungi peninsula, a first smaller exploration will start in the same area (Rovuma basin) in 2022 through a floating platform of another Area 4 consortium – led by ExxonMobil and Eni.
Area 4 will also have a large exploration, but the final investment decision has yet to be announced.
Total investments in gas exploration off Cabo Delgado represent the largest private investment underway in Africa, the respective consortia have announced, with overall values of up to $50 billion.
Cabo Delgado province has been the target of attacks by armed groups that international organisations rate as a terrorist threat.
Total’s source told Lusa that the company continues to closely monitor security conditions.
“We work with the relevant authorities and other stakeholders to provide a safe environment for our workforce and local communities,” it added.
“The safety of our workers and contractors is an essential value for Total,” the source said.
Source: Lusa via Club of Mozambique