Total leans on its global LNG portfolio to mitigate Mozambique delays
Total leans on its global LNG portfolio to mitigate Mozambique delays
Papua LNG project could offset some lost volumes and rebalance Total's exposure to Asian coal-to-gas switching opportunities
French oil major Total this week demonstrated the strategic benefits of having a diverse global LNG portfolio. Days after delaying the Mozambique LNG megaproject, Total pivoted to Papua New Guinea to fast-track a rival scheme that could partially plug the supply-side gap from the Mozambique delay. With coal-to-gas switching in the power sector driving Asian LNG demand, Total is taking a bullish view of this high-risk energy transition opportunity.
Total has just remobilised project teams working on its Papua LNG project, which will expand Papua New Guinea’s total LNG export capacity by 5.6 million tonnes per annum (mtpa) once it comes online in the mid-2020s. A final investment decision (FID) is expected in 2023, followed by a couple of years of construction and commissioning.
The PNG government’s blessing for the restart of Papua LNG after a year of delay is timely for Total. Last Monday, the French company declared force…