Italian energy services group Saipem announced on Thursday that they are currently working towards resuming a multi-billion-euro LNG project in Mozambique for TotalEnergies. However, they opted not to provide an exact timeframe for the restart.
The project, representing the inaugural onshore development of an LNG plant in Mozambique, was put on hold in 2021 due to security challenges and human rights issues in the Cabo Delgado Province, where it is intended to be situated.
In a post-results conference call, Saipem Chief Executive Alessandro Puliti said he visited the site last week where the large liquefied natural gas (LNG) plant would be set up.
Puliti said his company was working with the project’s shareholders to agree on additional costs for the restart of the project, which has a value of around 3.5 billion euros ($3.9 billion) for the group.
“I am unable to provide a specific amount, but we are dealing with significant additional expenses that we are presently discussing with subcontractors.”
In February, TotalEnergies assigned Jean-Christophe Rufin, a specialist in humanitarian action and human rights, to conduct an independent mission and evaluate the humanitarian conditions in the province. The purpose of this assessment is to make an informed decision regarding the resumption of operations.
