Mozambique LNG project expected online by 2026-2027: ONGC

The Mozambique LNG export project, which has been under force majeure due to attacks by Islamic State terrorists, could begin operations by 2026-2027, Arun Kumar Singh, chairman of Indian state-owned energy company ONGC, announced during a press event in Mumbai on May 29. 

ONGC Videsh, the overseas arm of ONGC, and two other Indian state-owned energy companies hold a combined 30% stake in the project, which French company TotalEnergies operates. ONGC Videsh holds a 16% share, while BPRL Ventures Mozambique, a subsidiary of BPCL, and Oil India have 10% and 4% ownership, respectively.

“We foresee the Mozambique LNG project as a 2026-2027 story. Most of the issues have been sorted out…. TotalEnergies, the operator, is known for being one of the faster project executers in the E&P industry,” Singh said.

The Mozambique LNG project, the first onshore LNG plant in the country, involves the development of the Golfinho and Atum fields in Offshore Area 1 and the construction of two liquefaction trains with a total capacity of 13.1mn metric tons/year.

On April 26, 2021, considering the evolution of the security situation in the north of Cabo Delgado province, Mozambique LNG withdrew all project personnel from the Afungi site. This situation also led the Mozambique LNG project partners to declare force majeure.

TotalEnergies last week released a report assessing the humanitarian situation in Mozambique's Cabo Delgado province. The report, prepared by independent expert Jean-Christophe Rufin, highlights the progress made by the Mozambique LNG project partners in addressing the challenges faced by the local population in the region.