Mozambique, Total sign protection pact for LNG project
26-08-2020 09:29:00 | by: Pie Kamau | hits: 4136 | Tags:

French major Total and Mozambique’s government signed a security pact to ensure safety of the $20 billion Mozambique LNG project being developed in the Cabo Delgado province, north of the country.

Over the past few months, a terrorist organization which claims to be affiliated with the Islamic State has been perpetrating attacks in the country.

According to Mozambique’s Minister of Mineral Resources and Energy, H.E. Ernesto Elias Tonela, the security pact bolsters security measures and endeavors to create a safe operating environment for partners like Total which enables their ongoing investment in Mozambican industry.

Total took the $20 billion final investment decision in 2019 and aims to deliver first gas by 2024. Last month, the company achieved $16 billion in funding for the project despite the difficult market conditions amid the COVID-19 pandemic and low oil prices.

The project comprises gas field developments in the Offshore Area 1 concession, comprising the Golfinho and Atum fields. The area is said to contain over 60 trillion cubic feet of gas. The development plan also includes the construction of a 13,1 million tons per annum capacity liquefaction plant.