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. The project will be funded with $11-billion of equity and $14-billion of 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
TotalEnergies will relaunch its Mozambique LNG project, following the halting of the project in 2021, once it has followed the recommendations of a commissioned human rights report that was published on May 23.

The commissioned report, prepared by humanitarian action expert Jean-Christophe Rufin, has noted that while armed conflict is expected to continue, the danger zones are now located to the south and west of the Mozambique LNG site.

According to TotalEnergies, an action plan has been decided upon, based on the report's conclusions, and this plan will now be implemented.

The action plan will be overseen by Rufin and includes remunerating displaced families by July, building new houses, improving access to fishing, renegotiating relations with security forces, and creating a foundation to improve local life with a multiannual budget of $200-million.

Energy services group Saipem said it had been notified by TotalEnergies to prepare for a gradual restart of the project beginning in July, while TotalEnergies CEO Patrick Pouyanné said last month that renegotiating costs with local contractors was the last step before a relaunch.

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.