Mozambique’s cabinet met on Tuesday but has yet to take a position on the updated budget and schedule for the massive liquefied natural gas (LNG) project led by TotalEnergies, a government spokesperson said.
The French oil major informed President Daniel Chapo last Friday that the Mozambique LNG consortium now estimates project costs have increased by $4.5 billion during the four-year suspension that followed an Islamist militant attack in 2021, Reuters reported.
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TotalEnergies and its partners are also seeking a 10-year extension to the project’s development and production period as partial compensation for the delay.
If the cabinet approves the revised terms, construction on the project, previously valued at $20 billion, will resume.
“When the government’s position is ready, it will be clear,” the spokesperson told reporters after the cabinet meeting, adding that restarting gas projects remains a national priority.
The spokesperson did not indicate when the updated budget and schedule would next be discussed.
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Image Credit: NOG Directory
