Gas

The project will involve Mozambican companies in contracts surpassing US$4bn. (Image source: TotalEnergies)

Mozambique LNG is set to generate first liquefied natural gas in 2029 as project activities have resumed after a prolonged force majeure was lifted from the site

As main equipment were largely engineered and procured during the inactive period, the project is now progressing at a promising pace with construction activities on at both offshore and onshore sites at Afungi.

With more than 3000 Mozambican nationals already working on the ground, the project will potentially generate an additional 7,000 direct jobs. It will also involve Mozambican companies in contracts surpassing US$4bn. 

Expected to make a big difference for the country's economic welfare, the resumption of activities was made official by a meeting between Daniel Chapo, President of the Republic of Mozambique, and Patrick Pouyanne, chairman and chief executive officer of TotalEnergies. 

Speaking on the benefits of the ambitious local content plan, Chapo said, “The resumption of the project represents a significant milestone for the national economy and reaffirms the confidence of international partners in Mozambique’s energy, institutional and human potential. It will have a direct and significant impact on job creation, both in construction phase and in the operational phase, stimulating the national labour market and promoting the capacity-building of Mozambican manpower. At the same time, it consolidates Mozambique’s positioning as a regional energy hub and reaffirms the country as a credible and relevant actor in the global liquefied natural gas market, strengthening its geostrategic position and its role in global energy security.” 

The significance of the Mozambique LNG project for TotalEnergies stands clear from the major's deep association with local content development in the region. Acknowledging the resumption as a major milestone for the company and expressing gratitude towards the President in making this happen, Pouyanne said, “We are now working together to make this project a great success for the people of Mozambique...This landmark project will position Mozambique as a major LNG exporter. With its strong local content, it will also bring lasting economic benefits to Mozambican people.” 

Tendrara is seeing continued operational progress.

Sound Energy is anticipating the commissioning of gas-fired power generation as the TE-5 Horst development has initiated flow from TE-6 and TE-7 wells 

With the wellheads placed approximately 2 kms apart, the wells' connection to the Gas Gathering System (GGS) have also been tested. This has been no mean feat as the GGS is a complex installation comprising wellheads, flowlines, choke valves, heat exchangers, liquid drop-out vessels and flares. 

The Mana Energy-operated project holds special significance for the company and its partners because of its sustainability scale. Once fully commissioned, it is capable of replacing the costly diesel while also reducing Scope 1 emissions. 

'We are very encouraged by continued operational progress at Tendrara, with both TE-6 and TE-7 successfully flowed as part of the commissioning of the Gas Gathering System and look forward to the commissioning of gas fired power generation. These achievements mark another important milestone for the Phase I development and reflect strong execution by the operating team," said Majid Shafiq, chief executive officer, Sound Energy. 

The nine high-performance engines that make up the Tendrara site are equipped to meet its operational power requirements, which means smooth functioning even in extreme desert conditions of up to 47 degrees Celsius. This uninterrupted energy supply is supported by containerised systems that integrates seven 2,260 kVA gas engines and two 1,600 kVA diesel engines.

Tendrara's success besides, Sound Energy has also reported securing Anoual Exploration Permits from the Minister for Energy Transition and Sustainable Development and the Minister of the Economy and Finance for the Mana-operated region in Eastern Morocco, covering 8,873 sq km. As a non-operating partner with a 27.5% interest in the venture, the company will be closely watching the outcomes of a structured work programme that includes the drilling of an exploration well with a primary Triassic objective. 

"The approval of the extension to the Anoual Exploration Permits is very positive...securing additional time and clarity to advance a well-defined exploration programme across a highly prospective acreage position in Eastern Morocco," Shafiq said. 

If the initial drilling is successful, there is scope for the acquisition of 150 sq km of 3D seismic dataset and drill an additional exploration well targeting the Triassic interval. 

The contract also finalised the delivery of the first phase of OQGN’s hydrogen pipeline network.

Egyptian engineering procurement and construction contractor, Petrojet, which is particularly well established in Abu Dhabi, has signed a US$273mn contract to facilitate the construction of a 193 km natural gas pipeline in Oman

Further advancing the rapidly growing mutual cooperation on natural gas infrastructure, the deal was initiated at the presence of Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources, and Mansoor Ali Al Abdali, Managing Director of OQ Gas Networks (OQGN). 

The contract also finalised the delivery of the first phase of OQGN’s hydrogen pipeline network, which will include 400 km of the planned 2,000 km system at approximately US$250mn.

This contract win will support the company in preparation for the upcoming green hydrogen and Natural Gas Liquids Extraction (NGLE) projects, leveraging its international expertise as Oman expands its new-energy ambitions.

The contract's relevance couldn't have been better timed as it was announced in line with Oman’s Green Hydrogen Summit, where collaboration opportunities were explored. 

The summit also reviewed progress by Engineering for the Petroleum and Process Industries (ENPPI) and Egypt Gas as they complete registration on OQGN’s Tawreed platform. The Duqm Refinery is nearing completion as the companies finalise technical pre-qualification documents for gas pressure reduction stations.

ENPPI, which partners with OQGN, Oman Tank Terminal Company (OTTCO), and Duqm Refinery, remains a key contender for upcoming project tenders. Discussions also highlighted broader Egyptian company participation in Oman’s energy projects.

TechnipFMC will manufacture and install flowlines and risers.

Following Coral South, Mozambique's second floating liquefied natural gas project, Coral North development, is ready for engineering, procurement, construction, and installation work in water depths of approximately 2,000 m

As TechnipFMC will be delivering the contract, the company's president-subsea,Jonathan Landes, said, “We are excited to once again work with Eni and their consortium partners in Mozambique. We will leverage our experience gained from the successful delivery of Coral South—the world’s first FLNG project in ultradeep water—by replicating our proven playbook with an enhanced approach.”

The contract will require TechnipFMC to manufacture and install flexible flowlines and risers, alongside subsea manifolds and umbilicals. 

TechnipFMC has secured the contract from the project's operator, Eni, who reached the final investment decision of the Coral North project in October this year, and aims delivery by 2028. 

While Eni is leading the venture with a 50% share, other partners include CNPC (20%), Kogas (10%), ENH (10%) and ADNOC-subsidiary XRG (10%). Eni will be investing on the development of a state-of-the-art floating LNG facility in the Rovuma Basin, where it will be generating gas volumes from the northern part of Area’s 4 Coral gas reservoir. 

The Coral North development follows the success of the Coral South project, which effectively continues to be in production.