Mozambique: Government guarantees banks and gas customers belief in Total’s project

The president of the Mozambican National Institute of Petroleum (INP) said yesterday that the banks financing Total’s gas project, as well as its customers believe in the viability of the deal despite the suspension of the venture, due to armed violence.
Total “discussed with the financiers [about the suspension of the natural gas project] and everyone believes there is room to overcome this situation,” said Carlos Zacarias, in an interview with public broadcaster Rádio Moçambique.Zacarias said that customers of liquefied natural gas also continue to believe in the viability of the business.Insisting on the year 2024 as the start date for the production of liquefied natural gas for the Total project – even with the project now stopping indefinitely – the president of the oil sector regulator noted that “adjustments” and stress management interventions will be needed to stabilise the situation.Also read: Total’s Force Majeure in Mozambique is a call for dialogue and a global firewall against terrorismCarlos Zacarias warned of the possibility of increasing the cost of financing the natural gas project in view of the serious situation generated by the March 24 attacks on the village of Palma, Cabo Delgado province, northern Mozambique, about six kilometers from the complex industrial which is under construction for the production of natural gas.
Source: Further Africa