Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.

MOZAMBIQUE -- Total has declared force majeure on the $20 billion Mozambique LNG project after a jihadist assault left dozens of people dead in the town of Palma, just a few kilometers from the site of the project. Over the past four years, the insurgents have carried out multiple attacks in the northeastern region of Cabo Delgado, killing more than 2,600 people and threatening Mozambique's dream of becoming a major LNG exporter (PIW Apr.9'21). Exxon Mobil, Eni and China National Petroleum Corp. -- which are partners in the country’s two other LNG projects -- are also monitoring events with growing alarm and reassessing security measures. Total confirmed on Monday that it had withdrawn all staff from the site, leaving it no choice but to declare force majeure. The French major operates Mozambique LNG with a 26.5% stake acquired from Anadarko for $3.9 billion in 2019. It said it hoped the government and its regional and international partners would restore security and stability in Cabo Delgado "in a sustained manner." Work at the site was suspended late last year after several low-level insurgent attacks in the area. Total has not said when it might resume, but reports quoting local contractors say it could be at least a year before workers are allowed to return.

Wanda Ad #2 (article footer)
Mounting risks threaten a predicted loosening of LNG markets by 2026, as the industry copes with cost inflation, labor shortages, construction delays and other challenges.
Thu, Sep 28, 2023
Bulgaria's parliament has voted to phase out imports of Russian crude oil by October of next year.
Fri, Sep 29, 2023