Southern Africa’s biggest project – the exploitation of the Mozambican gas fields in the north of the country – is on hold.In April, Total declared force majeure on the $20-billion LNG site in Afungi, due to threats to lives and property.Total’s withdrawal is a blow to the Mozambican logistics industry, with a number of companies having sustained offices in the north of the country for a number of years in order to be in line for contract cargo contracts.Total’s statement read: “Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site. “This situation leads Total, as operator of Mozambique LNG project, to the declare force majeure.”It added: “Total expresses its solidarity with the government and people of Mozambique and wishes that the actions carried out by the government of Mozambique and its regional and international partners will enable the restoration of security and stability in Cabo Delgado province in a sustained manner.”To date there has been no practical support for the seemingly outgunned and outmanoeuvred Mozambican forces from either the Organisation of African Unity or the West.The port town of Mocimboa da Praia has been occupied by insurgents since August 2020.On June 23, the Southern African Development Community (SADC) approved a plan for a Standby Force Mission to support the Mozambican army in the Cabo Delgado district.In early July, Rwanda announced it would be deploying 1 000 personnel from the Rwanda Defence Force (RDF) and the Rwanda National Police (RNP) to support the Mozambican a r my. According to Duncan Bonnett of Africa House, it is only projects around Cabo Delgado, however, that are affected. “We don’t expect any of the companies involved in the LNG project in the province to return until the security situation is under control. This is going to result in a sizeable delay on the project.”But, he said, projects elsewhere in the country were continuing. “Sasol, for example, approved the final investment decision on its project in Temane earlier this year, which is very good news.”This project will entail Mozambique in-country monetisation of gas through a 450-megawatt gas-fired power plant, Central Térmica de Temane (CTT), and a liquefied petroleum gas (LPG) facility in the same time frame. The balance of the gas produced will be exported to South Africa to sustain Sasol’s operations. The estimated total project cost is $760 million.A greenfield liquefied natural gas (LNG) import terminal at the Port of Matola, in the Mozambican capital of Maputo, was also progressing, said Bonnett.“The insurgents are active in Cabo Delgado. All the other project activity outside of that province continues in Mozambique – and in some cases such as that of Sasol we are, in fact, seeing the activity picking up."
