KEY POINTS
- CEO of TotalEnergies schedules visit to Mozambique to discuss LNG project.
- 70 percent of financing for the $14 billion project reconfirmed.
- Security improvements acknowledged, and more permissions needed for finance.
Later this month, TotalEnergies CEO Patrick Pouyanne will travel to Mozambique to meet with the newly elected president and talk about the company’s LNG project there.
The region’s persistent deadly instability has caused delays to the $20 billion liquefied natural gas project. Nonetheless, Patrick Pouyanne noted in a presentation to investors that security has advanced and the project is still feasible and lucrative.
TotalEnergies continues to support LNG from Mozambique
Situated amid one of Africa’s largest natural gas reserves, Mozambique’s liquefied natural gas endeavor is an important component of the country’s economic future. According to a report by Reuters, on October 9, the country will have presidential and legislative elections, which are predicted to keep the ruling Frelimo party in office.
In spite of the obstacles caused by a protracted insurgency, the government believes the project can support economic expansion.
According to Patrick Pouyanne, financiers have confirmed between 70 and 80 percent of the $14 billion finance package for the Mozambique LNG project.
However, he also mentioned that the company is seeking final clearance from three foreign credit agencies, some of which are situated in Western nations where recent changes have been made to gas legislation.
“We are awaiting approval for funding,” Pouyanne stated. “Once that is in place, we will move forward.” The project, which intends to monetize Mozambique’s natural gas deposits in order to generate significant economic benefits, is currently in the process of being approved by the credit agencies.
Despite obstacles, TotalEnergies is determined to proceed with the LNG project. Furthermore, timelines and actions to guarantee the project’s continuous development will probably be clarified during the meeting between Pouyanne and Mozambique’s leadership.
