Companies hired by TotalEnergies SE to build a $20 billion gas project in northern Mozambique have started making preparations to resume work on the project, four years since it was halted because of an armed rebellion, according to people familiar with the matter.
Firms have taken preliminary measures like dispatching resources to the site, two of the people said, who requested not to be named since the information is private. A representative for Total declined to comment.
The French power group sent a letter earlier this week and sent so-called notice to proceed with site preparation to companies like Portuguese builder Mota-Engil SGPS SA, which received a $365 million contract with Belgian builder Besix Group SA in 2020 to build sea facilities for the project, said one of the people. Another individual said talks have started between contractors and sub-contractors on returning.
Mozambique LNG, which is located in Cabo Delgado province, is seen as the future of the southern African nation, one of the poorest in the world. Total suspended operations, evacuated employees and invoked force majeure in 2021 after a wave of Islamic State-linked militant attacks.
The company will liquefy and ship the huge gas reserves off north-east Mozambique discovered 15 years ago. Mozambican President Daniel Chapo recently stated his government and private businesses will have to together guarantee the requisite security is in place in order to facilitate the reopening.