KEY POINTS
- Mozambique will not review LNG contract terms with energy majors.
- Security improvements in Cabo Delgado encourage project resumption.
- Chapo calls for dialogue to resolve political protests and tensions.
Newly elected President Daniel Chapo has affirmed that Mozambique will not review the terms of its contracts with energy giants like TotalEnergies and ExxonMobil, which are developing multibillion-dollar liquefied natural gas (LNG) projects in the country.
Speaking on Friday, Chapo emphasized that the contracts remain unchanged as the projects have not yet entered the production phase.
“These contracts are still in the investment stage. There’s no need to review terms when they haven’t even come into force yet in terms of operation,” Chapo said in an interview.
Mozambique’s government is counting on these energy projects to transform its economy and stabilize public finances.
TotalEnergies’ $20 billion LNG project in Cabo Delgado, previously stalled due to an Islamist insurgency, is among the key initiatives expected to resume construction soon.
Improved security leads to high level of confidence in LNG Projects
Chapo has also revealed that challenges on the security front have eased in the Cabo Delgado region, although sporadic attacks continue.
The government is supporting the Rwandan forces and other countries to ensure stability in the region which will allow for the continuation of stopped projects.
“The situation is under control, and we are confident that these projects will move forward,” he said.
Chapo also announced Estevao Pale as the new Minister of Energy and Mineral Resources. Pale, previously chairman of Mozambique’s national oil company ENH, is expected to play a pivotal role in overseeing the revival of LNG projects.
Protests and Illegal mining have presented several difficulties
Chapo spoke on the demonstrations that followed his disputed win in the recently held election that claimed more than 300 lives as post-election protests, according to civil society groups.
He called for dialogue as the only way to resolve political tensions, emphasizing the need for peace and collaboration.
On the issue of illegal mining, Chapo expressed sadness over the plight of Mozambicans involved in the siege of the Stilfontein illegal mine in South Africa.
According to Reuters, he acknowledged the difficulty of controlling illegal mining activities in Mozambique and pledged continued efforts to address the issue.
“These situations are unfortunate and deeply saddening. We must work harder to provide alternatives for our people,” he said.
