TotalEnergies is progressing with the expansion of the Afungi camp to house 2,000 workers, as part of the liquefied natural gas (LNG) megaproject in Cabo Delgado, Mozambique, according to a tender consulted by Lusa, marking the full resumption of the project.
The process concerns a request for expressions of interest for engineering and supply for the Afungi camp expansion, launched by CCS JV, a consortium contracted by the French multinational TotalEnergies, leader of the Area 1 consortium in northern Mozambique.
The consultation, open until 20 February, requires participants to provide details of the design, acquisition, and delivery of two-storey modular accommodation for a 2,000-person camp. This includes, according to the documents, the supply of furniture, equipment, internal lighting, internet, telecommunications, satellite television, potable water, and wastewater collection at the camp.
On 29 January, Mozambican President Daniel Chapo described the resumption of the megaproject, suspended for almost five years due to terrorist attacks, as a symbol of “resilience, courage and determination.”
“Today is a day of celebration for Mozambique, for Africa and for the world,” said Chapo, emphasising the importance of Mozambique LNG, “one of the largest” on the continent, and underlining the “full, total and complete resumption” of the project, with gas exports expected to begin in 2029.
After visiting the formal resumption of works at the Afungi basin, in the presence of TotalEnergies’ President Patrick Pouyanné, the Head of State stressed that the day represented “the victory, resilience, courage and determination of the Mozambican people in the face of adversity.”
Chapo recalled that Mozambique LNG alone will contribute US$35 billion (€29.2 billion) to state revenues over 25 years, generating 17,000 jobs during the construction phase, with more than 4,000 already on site, 80% of whom are Mozambican.
The project is valued at US$20 billion (€17.5 billion), with the capacity to produce 13 million tonnes per year (mtpa) from the offshore Rovuma basin.
“The ‘force majeure’ is over,” said Patrick Pouyanné in his remarks, highlighting that this is TotalEnergies’ largest investment in Africa.
“But it is imperative to prioritise safety first,” Pouyanné added, noting that the entire complex is currently under strict security measures, with the planned creation of the new city of Afungi, which is only accessible by air and sea for security reasons.
The Mozambique LNG consortium officially resumed construction of the LNG production and export facility in the Afungi bay on 29 January, suspended since April 2021, when TotalEnergies invoked the ‘force majeure’ clause following terrorist attacks.
The government has mandated an independent audit of the costs incurred by the project during the ‘force majeure’ period. It was also established that the four-and-a-half-year period of ‘force majeure’ will not count toward the concession term, despite TotalEnergies proposing an extension of more than 10 years to offset alleged losses of US$4.5 billion (€3.87 billion) since 2021.
Mozambique has three approved megaprojects for the exploitation of the Rovuma Basin LNG reserves, among the largest in the world, off Cabo Delgado, including this TotalEnergies project and another by ExxonMobil (18 mtpa) valued at US$30 billion (€26.1 billion), awaiting final investment decision, both in Afungi.
Additionally, the Italian company Eni has been producing about 7 mtpa since 2022 from the floating Coral Sul platform, which will be doubled from 2028 with the Coral Norte platform, in a US$7.2 billion (€6.2 billion) investment.
Source: Club of Mozambique / Lusa
