Maputo: The Area 1 Mozambique LNG Project is set to resume construction of its 13.12 MMTPA liquefied natural gas (LNG) facility after the consortium formally notified the Government of Mozambique to end the Force Majeure declared in May 2021. The decision comes following a significant improvement in the security situation in the northern Cabo Delgado Province, which had previously forced a suspension of construction activities that had commenced in 2019.
Background: Force Majeure Declared Amid Security Concerns
In May 2021, the Area 1 Mozambique LNG Project declared Force Majeure due to escalating security concerns in Cabo Delgado. At that time, the ongoing construction work, initiated in 2019, was halted to ensure the safety of personnel and assets. The Force Majeure declaration temporarily suspended all on-ground construction and project-related activities.
Area 1 Consortium and Stakeholders
The Area 1 project is operated by Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of TotalEnergies SE, holding a 26.5% Participating Interest (PI). Other partners include:
- ENH Rovuma Area Um, S.A.: 15% PI
- Mitsui Rovuma Offshore Area 1 Limited: 20% PI
- ONGC Videsh Rovuma Limited (OVRL): 10% PI
- Beas Rovuma Energy Mozambique Limited (BREML): 10% PI
- BPRL Ventures Mozambique B.V.: 10% PI
- PTTEP Mozambique Area 1 Limited: 8.5% PI
ONGC Videsh Limited, the wholly owned overseas arm of India’s Oil and Natural Gas Corporation (ONGC), holds a 16% effective interest in Area 1 through its subsidiaries OVRL and BREML.
Resumption of Construction Activities
The lifting of the Force Majeure now allows the consortium to restart construction and work towards the early completion of the 13.12 MMTPA LNG facility. This development is expected to enhance energy security and create economic opportunities for Mozambique, while also contributing to the global LNG supply.
Significance for Mozambique and Stakeholders
Restarting the project is a major milestone for the Mozambique LNG sector. The Area 1 project, once operational, will become one of the largest LNG facilities in Africa, with capacity to supply natural gas to global markets. The improved security conditions and the resumption of construction are positive signs for investor confidence and regional development.
About ONGC
ONGC Videsh Limited (OVL) is the international arm of Oil and Natural Gas Corporation Limited (ONGC), India’s premier national oil company. OVL invests in and manages oil and gas assets abroad, contributing to India’s energy security and global presence in the upstream energy sector. Through its investments in Mozambique and other countries, OVL plays a key role in securing long-term energy resources for India.
