Energy major Total has declared force majeure on its Mozambique LNG project in the face of a worsening security situation — raising questions over the future of 17 LNG carrier newbuildings worth more than $3bn that had been pencilled in at yards for the exports.

The French major said in a statement on Monday: “Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site.

“This situation leads Total, as operator of Mozambique LNG project, to declare force majeure.”

Total, which controls a 26.5% stake in the project, expressed “solidarity with the government and people of Mozambique” and its hopes for the restoration of security in the region. But it did not give a timeline for when it might move forward again with the two-train, 12.88-million tonnes per annum LNG project.

The shock suspension of the huge project — which has been dubbed “transformational” for the country — leaves the future of 17 LNG carrier newbuildings at Hyundai Samho Heavy Industries and Samsung Heavy Industries hanging in the balance.

TradeWinds understands the shipowners involved with the orders for the newbuildings that were to be fixed on time charter to the project are waiting to hear more from Total.

The vessel contracts worth more than $3bn in total were inked in December last year. But at the time the orders were said to be conditional, allowing owners to cancel before a date at the end of May.

Mitsui OSK Lines signed up to five vessels at Hyundai Samho and K Line inked four.

At Samsung Heavy Industries, NYK Line and Maran Gas Maritime took four apiece.

The last vessel was penciled in for delivery in September 2024 — the year the project was due to start up.

Pull-back

Total had already pulled the bulk of its personnel off the LNG project site following attacks by Islamist militants in the area in recent weeks.

Dozens of people, including foreign workers, were killed in an attack on the coastal town of Palma in Mozambique’s Cabo Delgado province towards the end of March.

Total's move today also throws up questions about future moves for two floating storage and regasification unit-based projects.

The energy major has also been pursuing plans for a floating storage and regasification unit to be located off Maputo in Mozambique.

In May, Karpowership and MOL joint venture KARMOL are due to dispatch their newly converted FSRU to Mozambique to work alongside an existing powership moored there.