Name of the Project
Mozambique Area 1 liquefied natural gas (LNG) facility.

Location
The project proposes to develop an LNG facility on the Afungi peninsula in Cabo Delgado province, Mozambique.

Project Owner/s
Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of TotalEnergies, operates Mozambique LNG with a 26.5% participating interest, alongside ENH Rovuma Área Um (15%), Mitsui E&P Mozambique Area1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique (10%) and PTTEP Mozambique Area 1 Limited (8.5%).

Project Description
Offshore Area 1 contains about 65-trillion cubic feet (tcf) of recoverable natural gas.

The project involves the development of Mozambique’s first onshore LNG facility comprising two initial LNG trains with a total nameplate capacity of 13.1-million tonnes a year to support the development of the Golfinho/Atum field, located entirely within Offshore Area 1.

A total of 18 tcf will be developed in the first two phases.

The project has scope to increase production to 50-million tons.

Gas from the Anadarko-operated offshore field will be sent to an onshore processing plant, where it will be liquefied and then exported.

Potential Job Creation
Area 1 has about 5 000 workers on site, progressing works associated with the construction of a resettlement village, camp expansion, an airstrip and the Palma-Afungi highway.

Capital Expenditure
$25-billion, funded through $11-billion in equity and $14-billion in debt.

Planned Start/End Date
A final investment decision was announced in June 2019.  The project was halted in 2021 following insurgent attacks on civilians.

At this time, there is no date set for the restart of construction on the project.

Latest Developments
The board of the US Export-Import Bank has approved a nearly $5-billion loan for the long-delayed project, clearing a key hurdle to restarting construction.

The bank had initially agreed to a $4.7-billion loan under President Donald Trump's first administration, but re-approval was required after construction had been suspended in 2021, owing to violent unrest in northern Cabo Delgado, before any funds were disbursed.

TotalEnergies CEO Patrick Pouyanné stated in February that he expected US financing approval within weeks, with other credit agencies to follow in the coming months.

TotalEnergies has been awaiting loan re-approvals from the US, the UK, and Dutch export credit agencies before lifting the force majeure that has been in place since 2021.

Mozambique Energy Minister Estevão Pale told the Financial Times that he also expected the UK and the Netherlands to reconfirm their support.

Mozambique LNG, in which TotalEnergies holds a 26.5% operating stake, was expected to position Mozambique as a major LNG producer. However, the project stalled when an insurgency led by Islamic State-linked militants swept through the region.

Security has since improved, and partner company Mitsui stated in December 2024 that final preparations were under way to resume construction following contract renegotiations.

Environmental groups have argued that the project's security risks should have been grounds for denying financial support.

Key Contracts, Suppliers and Consultants
TechnipFMC, through its subsidiary FMC Technologies (subsea trees, completion workover riser and installation workover control system, subsea controls system, subsea connectors and production manifolds); TechnipFMC, through its subsidiary Technip Mozambique and Oceaneering International (aftermarket services in Mozambique); Oceaneering International (subsea umbilicals and distribution hardware); Advanced Technology (pipeline subsea ball and subsea gate valves); Cameron Italy (subsea chemical injection metering valves engineering, procurement, construction and installation (EPCI) for the offshore subsea system); TechnipFMC and VanOord (EPCI of the offshore subsea system, engineering, procurement and construction (EPC) for the LNG facility and support facilities); and McDermott, Chiyoda and Saipem (EPC contracts for the Mozambique LNG liquefaction facility and support facilities).

Contact Details for Project Information
Total E&P Mozambique Area 1 Limitada, tel +258 21 500 000 or email tepma1.communication@total.com.