
- Mozambique | 16 October 2020

The Mozambique LNG project securing financing during the COVID-19 crisis is considered a remarkable achievement. What does this milestone mean for Total and Mozambique?
It is truly inspiring to witness the market’s continued confidence in the project and Total as the operator, even amidst these challenging times. The project has already made significant progress with the involvement of a 5,500-strong Mozambican workforce, successfully delivering various essential projects such as the airstrip, the Palma-Afungi highway, and other infrastructure crucial for the construction of the LNG facility. Despite the obstacles posed by COVID-19, we remain on track to deliver the first LNG cargoes in 2024.
How will this large-scale project impact the Cabo Delgado region?
The project is poised to bring substantial and long-lasting benefits to Mozambique. These gains will extend far beyond the lifespan of our Train I and II projects for the Golfinho-Atum line. In addition to injecting significant revenues into the public treasury, the project will contribute to upskilling the local workforce and fostering professional development. It will also play a pivotal role in the growth and development of companies involved in the project, while acting as a catalyst for other industrial advancements in the country. Given the vast resources at stake, it effectively creates a pipeline of opportunities for Mozambican workers and local businesses. Notably, we have laid the foundation for a training center in Afungi and have already commenced training programs utilizing existing facilities in Pemba and online platforms. During the operational phase, we anticipate employing 1,500 Mozambicans. Total and its partners are actively working on establishing a dedicated training center to support the operation phase, which will require a skilled workforce. In terms of enhancing access for local businesses, we have two key focuses: ensuring transparency by publishing information about tender opportunities and employment prospects, and implementing capacity building programs at all levels. We recognize the importance of local companies accessing funding at favorable costs, which is why we are engaging with banks and multilateral agencies. We are progressing as planned, and the Mozambican LNG project undoubtedly has a catalytic role to play in Mozambique. To date, our investments have amounted to USD 699 million, demonstrating our commitment to delivering in partnership with local businesses. We maintain a strong collaboration with the National Petroleum Institute (INP) on a monthly basis to showcase the progress we are making in terms of local content.
What are your final thoughts on the current situation in Mozambique?
As the world’s second-largest global LNG player, Total has had a longstanding presence throughout the African continent. Our entry into Mozambique and the Rovuma Basin represents a highly strategic move for us, as Mozambique’s geographic location enables us to serve emerging LNG markets worldwide. Investing in LNG aligns with Total’s major focus, as it generates low carbon emissions. The world is shifting away from coal and embracing LNG, which is expected to experience significant growth over the next two decades. Our portfolio reflects this transition, with gas accounting for 53% and oil for 47% in comparison to 34% gas and 66% oil in 2004. This trend will continue as consumers worldwide become more conscious of the fuel they use and its environmental impact. At Total, we have integrated the challenge of climate change into our corporate strategy, acknowledging our responsibility to the planet. Undoubtedly, the LNG project in Mozambique plays a significant role in achieving this ambition. We firmly believe that this project will deliver substantial and enduring benefits to Mozambique and the Cabo Delgado province. These gains encompass not only financial returns but also knowledge transfer and the growth of local businesses.