Total to declare force majeure on its Mozambique LNG project

French energy giant Total is set to declare a “force majeure” situation beyond its control, a legal concept meaning it can cancel fulfilling contractual obligations over Mozambique LNG project.

The decisions follows the latest jihadist assault on a nearby town last month. Dozens of civilians were killed in the Islamic State-linked attacks in the coastal Mozambique town of Palma, near gas projects that are worth US $60billion and are aimed at transforming the East African nation’s economy.

Total removed its remaining staff from the Afungi peninsula natural gas site after dozens of civilians were killed in the Islamic State-linked attacks in the coastal Mozambique town of Palma on March 24. It had already evacuated some workers and suspended construction in January following a series of jihadist attacks nearby.

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Mozambique LNG Project

“In the current environment, Total can no longer operate in the Cabo Delgado province in a safe and efficient manner. All project personnel have been removed from the site and will not return until conditions allow,” said a Total spokeswoman.

The Mozambique LNG Project started with the discovery of a vast quantity of natural gas off the coast of northern Mozambique in 2010. The project comprises the Golfinho-Atum gas field development in the offshore Area 1 Block of the deep-water Rovuma Basin and the construction of a 12.88 million tonnes per annum (Mtpa) onshore liquefied natural gas (LNG) facility on the Cabo Delgado coast of Mozambique. This was to be the first onshore LNG facility in Mozambique upon completion.