Africa Defence Gas Government Mozambique

Total and Mozambique sign security pact for US$20B natural gas project

French oil major Total has signed a security pact with the Mozambique government to protect a US$20B natural gas (LNG) project being developed in the southern African country, the company said on Monday.

Mozambican security forces have been battling a low-level insurgency against militias suspected of having links to Islamic State in the gas-rich north of the country.

Violence in the northern Cabo Delgado region has recently claimed dozens of lives. Earlier this month insurgents captured a heavily-defended port in the far northern town of Mocimboa da Praia.

Also read: Mozambique LNG Project to create jobs in US

Total’s project includes the development of the Golfinho and Atum natural gas fields in the Offshore Area 1 concession, containing more than 60 trillion cubic feet (Tcf) of gas, and the construction of a liquefaction plant with a capacity of 13.1 million tons per annum.

Initial production is slated by 2024.

“This … 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.

Source: Reuters

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