Mozambican President Filipe Nyusi believes that French oil and gas giant TotalEnergies is waiting for the results of the upcoming presidential, parliamentary, and provincial elections, scheduled for 9 October, before restarting its liquefied natural gas (LNG) project in Cabo Delgado province.
Speaking to reporters on Tuesday at the end of a four-day visit to New York, where he attended the United Nations General Assembly, Nyusi noted that TotalEnergies remains committed to resuming the project but has yet to set a firm date.
“During election periods, companies prefer to assess the situation before making significant investments. There’s a convergence of events both in Mozambique and the USA. TotalEnergies will continue its work in Cabo Delgado, but no one invests during times of uncertainty,” Nyusi stated.
The President explained that TotalEnergies wants to ensure that the election results will not put its investment at risk. “These projects involve substantial financial commitments, and responsible investors avoid uncertain conditions,” he added.
TotalEnergies leads the consortium overseeing the Mozambique LNG project, located on the Afungi Peninsula in Cabo Delgado’s Palma district. The project was halted in April 2021, when TotalEnergies declared force majeure following a major terrorist attack on Palma.
The $20 billion Mozambique LNG project was launched after the discovery of over 65 trillion cubic feet of natural gas in the Rovuma Basin. In 2019, TotalEnergies and its partners made a Final Investment Decision to move forward with the project, which includes the construction of two gas liquefaction units, with the potential to expand production to 43 million tonnes per year.
Since October 2017, Cabo Delgado has been plagued by terrorist attacks that have claimed over 3,000 lives and displaced more than 900,000 people, sparking a humanitarian crisis in the region.
