After years of delay, the government of Mozambique appears poised to restart the $20 billion liquefied natural gas (LNG) project led by TotalEnergies, while also securing World Bank financing for the largest hydropower project in Southern Africa in 50 years.
The development, which began in 2010 following the discovery of a massive offshore natural gas deposit, received final investment approval in 2019.
However, development was halted in 2021 due to a wave of violent attacks by Islamist extremists near the project’s site, prompting the French energy giant to suspend the initiative over safety concerns.
“We have the small problem of jihad, terrorism,” the president of Mozambique Daniel Chapo disclosed.
In an earlier interview with Bloomberg in Spain, the president said that while the region is more stable than four years ago, it isn’t “heaven,” but urged a restart nevertheless.
President Daniel Chapo indicated that negotiations with TotalEnergies CEO Patrick Pouyanné are proceeding and that an agreement is expected to be reached soon.
“I was with Mr. Pouyanne two weeks ago, and things are going well,” Chapo said. “In August, we will close our talks” about when to restart the project, the president added.
With security in the region greatly improved, TotalEnergies plans to restart construction of the LNG project later this summer.
Mozambique’s plan to generate electricity for 300 million people, and the World Bank’s assistance
Additionally, Mozambique is looking forward to a future of sustainable energy in addition to LNG, according to a separate Bloomberg report.
In an interview with the World Bank President Ajay Banga, it was revealed that the global lender plans to offer assistance for the $5 billion Mphanda Nkuwa hydroelectric project on the Zambezi River, and a related $1.4 billion power transmission project.
The dam, which has a planned capacity of 1,500 megawatts, is scheduled to be operational by 2031. It will be supported by a $1.4 billion power transmission project.
The objective is to deliver electricity connections to 300 million people in sub-Saharan Africa by 2030, considerably boosting access in an area where more than 80% of the world’s 680 million people without the energy source dwell.
“We want to be the hub of energy in our region, the Southern African Development Community,” Mozambique’s president stated.
Mphanda Nkuwa is being developed via a partnership between the Electricité de France SA, TotalEnergies SE, and Sumitomo Corp.
The Mozambican government and its Hidroeléctrica de Cahora Bassa firm will own holdings.
