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Mozambique: Total keeps 2024 for LNG production despite uncertainties

The French oil company Total told Lusa on Friday that it maintains 2024 as the year of natural gas production in northern Mozambique, despite the uncertainties that COVID-19 and the low price of oil are causing.

“It is difficult to predict the course of events, but to this day we are still on schedule to deliver the first shipment of LNG in 2024,” said Total’s official source in Mozambique.

The statement came after the company’s executive director, Patrick Pouyanné, announced a week ago a one-fifth cut in investment spending for this year and reductions in operating costs.

In Mozambique, Total is very committed to preventing COVID-19 from reaching the project in the Afungi peninsula and surrounding communities of the construction works of Area 1.

“Members of the local labour force and expatriates in Afungi, capable of performing their functions remotely, have been repositioned at Total’s office in Maputo or their homes,” the company said.

The rotation schedules for other members of the workforce to maintain operations has also been revised.

These help to significantly reduce the risk of spreading the new coronavirus, in addition to allowing the project to progress as far as possible.

The development plan for Area 1 of the Rovuma basin in Cabo Delgado, northern Mozambique, is estimated at $23 billion – twice the country’s GDP.

There will be two gas liquefaction lines with a total production capacity of 12.88 million tonnes per year (mtpa) and beside the works of the plant, an airstrip is already operational.

Total leads the Area 1 consortium with 26.5%, alongside the Japanese Mitsui (20%) and the Mozambican state oil company ENH (15%), with smaller participation from the Indian ONGC Videsh (10%) and its subsidiary Beas (10%), Bharat Petro Resources (10%) and the Thai PTTEP (8.5%).

The other two oil companies that lead the Area 4 consortium, adjacent to the project led by Total, on Friday postponed responses to Lusa on the possible impact on their activities in Mozambique.

Unlike Area 1, where the final investment decision (FID) has already been made and infrastructure construction is progressing, the Area 4 onshore project FID has yet to be announced.

Source: Lusa via Club of Mozambique

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