TotalEnergies postpones multi-billion Mozambique LNG project

French energy giant TotalEnergies has further put off its liquefied natural gas (LNG) project in Mozambique, following ongoing political uncertainty and escalating security issues, according to Financial Times. The project is currently worth approximately $20bn (€19.14bn) and has already faced a number of hurdles. 

It was initiated in 2019, following a final investment decision and was expected to help towards turning around Mozambique's economy. This project was the continent's biggest foreign direct investment (FDI) project at the time. 

Armed uprisings halt work

However, the company was compelled to declare force majeure back in 2021, following insurgent attacks in Mozambique's Cabo Delgado province. These attacks took place close to a TotalEnergies site, which was expected to be used to convert gas into liquid. 

Although TotalEnergies planned to resume the project by the end of last year, the plans were delayed following increased violence and unrest after the October presidential election, the result of which remains heavily contested. Violent protests have not only led to the loss of lives but have also hit businesses and caused ports and land borders to be shut down.

This latest postponement of the LNG project has now resulted in concerns about the project's ability to start production in 2029. 

TotalEnergies said on its website: "Considering the evolution of the security situation in the north of the Province of Cabo Delgado, in Mozambique, we confirm the withdrawal from Afungi of all personnel from the Mozambique LNG Project. This situation leads TotalEnergies EP Mozambique Area 1, Lda. (TEPMA1), as operator of the Mozambique LNG Project, to declare force majeure. 

"We express our solidarity with the Government and the Mozambican people and hope that the actions carried out by the Government of Mozambique and its regional and international partners allow for the re-establishment of security and stability in the Province of Cabo Delgado in a sustained manner."

The company has indicated there may be hope of a turnaround soon, following Rwanda and Mozambique striking up a partnership. Rwanda has deployed thousands of troops to help Mozambique. 

TotalEnergies sells 50% of its West Burton Energy stake

TotalEnergies recently sold off 50% of its West Burton Energy stake to EPUKI, the UK subsidiary of EPH. TotalEnergies bought out West Burton Energy last June but had always made it clear it would sell off half of it.

The company has revealed that the sale was to help it better align its increasing UK renewable energy portfolio with its flexible gas generation capacity. 

Following the sale, West Burton Energy’s 1.3 GW gas fired power plant will be operated as a joint venture between EPUKI and TotalEnergies. West Burton Energy also owns a 49 MW battery storage system in the UK. 

Sophie Chevalier, senior vice president of Flexible Power & Integration at TotalEnergies, said in a press release on the company's website: "We are delighted to partner with EPH, a recognised and experienced power producer in the United Kingdom. 

"Thanks to this operation, we are adjusting our net flexible generation capacity at 700 MW, which is consistent with the capacity required to support our Renewables growth in the United Kingdom. This integration between flexible and renewable assets will contribute to the objective of our Integrated Power business to reach 12% return by 2030."