Italian engineering contractor, Saipem, has assured that it is restarting work this July on TotalEnergies LNG project in Mozambique.
The 12.9 million metric tons/year project was suspended in 2021 amid rising violence in the region.
Speaking during the company’s year-end call, the chief executive officer of the company, Mr. Alessandro Puliti, said it would gradually restart work on the project, “according to the information received by our clients.”
However, TotalEnergies has not confirmed publicly that the project is resuming. The company had commissioned a report to examine the humanitarian situation in the region, which was due at the end of last month.
Whereas the report is awaiting action, it is expected to help the project’s partners make a decision about restarting work.
Enbridge Inc. said it would acquire 35 Bcf of natural gas storage along the Gulf Coast for $335 million to support its export strategy. Enbridge said the Tres Palacios assets serve Texas gas-fired power generation and increasing LNG exports in the region. The deal is expected to close in 2Q2023.
U.S. natural gas futures declined last weekend, ending a six-day rally after a weak winter storage withdrawal and warmer weather weighed on prices. The latest U.S. withdrawal left inventories at 2,114 Bcf, well above the year-earlier level of 1,663 Bcf and the five-year average of 1,772 Bcf.
European gas prices also continued to fall despite frigid weather. High LNG deliveries and Freeport LNG’s partial return to service in the U.S. continues to keep a lid on prices that have traded below $15/MMBtu this week.
By Ken Okoye