TotalEnergies has postponed the restart of works for US $20bn LNG export project in Mozambique. The firm cited ongoing political instability and security challenges as reasons for delays.
The project, based near Palma in the conflict-affected Cabo Delgado province, has been under force majeure since 2021, following deadly Islamist militant attacks in the region. The Mozambique LNG Project started with the discovery of a vast quantity of natural gas off the coast of northern Mozambique in 2010.
The project comprises the Golfinho-Atum gas field development in the offshore Area 1 Block of the deep-water Rovuma Basin and the construction of a 12.88 million tonnes per annum (Mtpa) onshore liquefied natural gas (LNG) facility on the Cabo Delgado coast of Mozambique. This was to be the first onshore LNG facility in Mozambique upon completion.
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Effects
The project, initially expected to start LNG production in 2024, has faced repeated delays. First pushed to 2027, then 2029, the timeline is now in jeopardy, with no clear indication of when the conditions for resumption, peace, security, and reliable public services will be met.
The delay affects Mozambique’s economic prospects, as the LNG project was expected to boost revenues, create jobs, and attract further foreign investment. The inability to contain insurgency in Cabo Delgado underscores broader challenges in addressing security in resource-rich but conflict-prone areas. The prolonged delay adds uncertainty to the global LNG supply chain, especially as demand rises in Europe and Asia.
The company has emphasized the need for restored stability and public services before lifting the force majeure. Despite significant financial and operational setbacks, TotalEnergies remains committed to the project, provided the regional situation improves.
