Market Chatter: Mozambique Disagrees With $2 Billion Cost Claim by TotalEnergies LNG Project
Mozambique's government disputes $2 billion of the total costs that French energy major TotalEnergies (TTE) says it has incurred along with partners during a years-long halt to the construction of their liquified natural gas project there, Bloomberg reported on Wednesday, citing an unnamed source.The dispute could push the project even further behind schedule. and delay the country's ambitions to become a major alternative LNG supplier.In October, TotalEnergies Chief Executive Officer Patrick Pouyanne in a letter to Mozambican President Daniel Chapo estimated the costs incurred at an even higher $4.5 billion, while the actual costs claimed were for more that $5 billion.UK-based consultancy Bayphase, which was hired by Mozambique and finalized its audit this month, could confirm only about $3 billion in costs incurred during the halt, without supporting documentation confirming the other $2 billion.The firm has asked TotalEnergies to respond to its final report within 15 days, the report said.An agreement on the costs is required before the government can approve an updated development plan for the project to move forward. In October, Pouyanne projected the total cost of the new facility at about $20.5 billion, the report said.The parties are in talks and could still reach a consensus, the report said.has reached out to TotalEnergies for a comment. The Mozambique Ministry of Mineral Resources and Energy could not be immediately reached.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)