Mozambique: President wants resumption of LNG projects, output boost

Login

Register

http://www.clubofmozambique.com/

Mozambique: President wants resumption of LNG projects, output boost

12:47 CAT | 14 Sep 2022

Photo : Domingo

Mozambique’s president, Filipe Nyusi, called on Wednesday for oil companies to resume gas projects in Cabo Delgado, considering that there is more security than before the attack on Palma and global demand requires it.

“The success in combating terrorists in the Mocímboa da Praia – Palma axis, which includes roads and access to the port, provides a situation of greater stability” than before the attack on the town in March 2021, the head of state said at a conference on gas in Maputo.

On the other hand, the new context, particularly with the cut-off of gas supplies from Russia to Europe, allows Mozambique’s supply to go “beyond the volumes to be produced” estimated by the initial studies of the projects.

“The rise in energy commodity prices appears favourable to the profitability of investments,” he stressed, emphasising that the figures are well above the models used in 2019 to launch the Rovuma basin projects.

“In this context, we expect that development activities will be resumed by the concessionaires of area 1,” the consortium led by TotalEnergies and which suspended the construction of the gas liquefaction plant due to deteriorating safety conditions.

Similarly, Nyusi advocated the final decision to invest in area 4, led by ENI and Exxon, “as soon” as possible.

The president said he would hold “more specialised meetings” with the sector to study “other support measures to maintain security”.

“The terrorists are on the run”, and the “Defence and Security Forces (FDS) are stabilising all affected districts”, with local administration and public services returning, he added.

“Last week, there were more than 10,000 people in Palma,” he added, inhabitants that “are also timidly beginning to return to Mocímboa da Praia,” he concluded.

Source: Lusa