MAPUTO- The Government of Mozambique announced yesterday, in Afungi, the effective recovery of the Liquefied Natural Gas Project (LNG) Dolphin/Atum, also called Mozambique LNG, located in Area 1 of the Rovuma Basin. This is a structural investment valued at around USD 15.4 billion, which is considered a key factor in the consolidation of the natural gas sector and in the dynamism of the economic recovery of the province of Cabo Delgado.
The announcement was made by the President of the Republic, Daniel Francisco Chapo, at a ceremony attended by TotalEnergies CEO Patrick Pouyanné, formally marking the end of the period of Major Force declared in 2021, following the deterioration of the security situation in the north of the country.
During the ceremony, the President of the Republic stressed that the resumption of the project is a clear sign of confidence in the progressive stability of Cabo Delgado and the ability of the Mozambican State to guarantee conditions for large-scale investments. Daniel Chapo also stressed that any ongoing negotiations on cost updating do not hinder the continuity of the project, reaffirming the Government's commitment to its implementation.
The President of the Republic also mentioned that, during the construction phase, the project could directly employ around 17000 workers, among Mozambicans and foreigners, and mobilise significant contracts for national companies, estimated at around 2.5 billion US dollars, strengthening local content and training of the national enterprise.
In turn, Patrick Pouyanné stated that TotalEnergies envisages a significant acceleration of activities in the coming months, both on land and at sea, with the aim of putting the project into production by 2029. According to the responsible, teams and technical means are already deployed for the recovery of works, including the preparation of offshore infrastructure, in a phased and prudent approach.
For Nazario Bangalane, Chairman of the INP Board of Directors, the resumption of the Mozambique LNG Project marks a moment of high institutional responsibility. The INP, as a regulator of the upstream sector, ensures that this process takes place with technical rigor, transparency and strict compliance with the legal and contractual framework, ensuring predictability and legal certainty for the State and investors. "
The Dolphin/Atum Project, inserted in Area 1 Offshore of the Rovuma Basin, it develops under the Research and Production Grant Agreement approved by the Council of Ministers under Decree 67/2006 of 26 December and provides for the annual production of around 13,12 million tonnes of Liquefied Natural Gas (LNG) over an estimated period of 25 years. The development includes the installation of two land liquefaction modules in Afungi as well as associated infrastructure.
It should be noted that, in September 2024, the concessionaire submitted to the Government a proposal for Amendment to the Development Plan, incorporating additional costs to the project and updating the schedule, which is under evaluation.
From an economic point of view, it is estimated that the Mozambique LNG Project will be able to generate revenue of around US$35 billion over the course of its life for the Mozambican State through taxes, oil-profit and other tax mechanisms. The project also provides for the supply of natural gas to the domestic market, with a total volume of up to 400 million cubic feet per day, contributing to the industrialisation, energy security and diversification of the national economy.
