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Total declares force majeure at $20 billion LNG Mozambique plant

April 28, 2021

Associated Press:

The French energy firm Total SE announced yesterday that it has halted all operations on its $20 billion investment in a liquefied natural gas project in northern Mozambique as a result of the extremist rebel insurgency there.

Total’s declaration of force majeure casts doubt on the future of the gas project, which had been expected to bring large and sustained economic growth to Mozambique’s struggling economy.

The announcement comes just over a month after the rebels attacked Palma, just a few miles from Total’s gas project. The rebels’ assault on Palma lasted for five days during which more than 80 people were killed, banks were robbed and buildings destroyed. Some 50,000 people fled Palma, adding to the humanitarian crisis in northern Mozambique.

The insurgency had cause Total to suspend work on the gas project in January. Ironically, Total had announced March 24 that the security situation had improved and it could resume work on the project. But just hours later the rebels attacked Palma, forcing Total to abruptly close the project again.

[Andrew Meldrum and Tom Bowker]

More: France’s Total halts its gas project in northern Mozambique

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