TotalEnergies resumes $20 billion LNG project in Mozambique after five-year halt

TotalEnergies Reinstates Construction on Mozambique LNG Project

Construction on a $20 billion liquefied natural gas (LNG) project in Mozambique has resumed after being halted indefinitely due to escalating violence in the region. The project, one of the largest LNG projects on the continent, was suspended in 2021 as Mozambique battled to contain ISIL-linked fighting that resulted in over 6,400 deaths between 2014 and 2022.

The project, which is expected to produce more than 13 million tonnes of LNG annually, will generate an estimated $35 billion for government coffers over its lifetime. TotalEnergies has stated that the project will bring significant economic benefits to Mozambique, creating up to 7,000 direct jobs during construction and awarding contracts worth over $4 billion to local companies.

Security in the region has improved, with the deployment of Rwandan soldiers around the Afungi construction site. However, environmental and human rights groups have expressed concerns about the project’s impact on Mozambicans, who live below the poverty line of $3 per day. The European Center for Constitutional and Human Rights (ECCHR) has filed a complaint against TotalEnergies, alleging that it financed and supported the detention, torture, and killing of civilians.

TotalEnergies denies all accusations. The company’s executive Patrick Pouyanne and Mozambique’s President Daniel Chapo jointly announced the project’s relaunch at a ceremony near the construction site in Afungi, Cabo Delgado province. The project is expected to come online in 2029.

Source: Al Jazeera