French oil and gas company Total is facing increased security concerns at its $20bn Mozambique liquefied natural gas (LNG) project. The company has been removing staff from the project site as a three-year old Islamist militant insurgency in the northern province of Cabo Delgado escalates.
Total’s Mozambique LNG plant is one of two projects on the Afungi Peninsula. The other is ExxonMobil’s Rovuma LNG project. Both are intended to involve $50bn of investment — the largest industrial investment in Africa.
And an Institute for Energy Economics and Financial Analysis (IEEFA) briefing note highlighted how more than $50bn in Asian LNG import investment is at risk from likely higher price volatility. The recent LNG price spike is not a one-off — the logistics of LNG make it prone to price surges.