French energy major TotalEnergies has formally resumed construction of its US $20bn Mozambique LNG project, marking the end of a five-year suspension triggered by a devastating jihadist attack in the country’s northern Cabo Delgado province.
The announcement was made by TotalEnergies chief executive Patrick Pouyanné during a relaunch ceremony near the Afungi project site, attended by Mozambican President Daniel Chapo. The project was halted in 2021 after insurgents overran the nearby town of Palma, killing an estimated 800 people and forcing thousands to flee. Following the attack, TotalEnergies declared force majeure and withdrew staff as security conditions deteriorated. The insurgency, which began in 2017 and is linked to Islamic State affiliates, has since claimed more than 6,200 lives, according to conflict monitoring group ACLED.
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Economic boost
Pouyanné confirmed that force majeure has now been lifted, allowing full construction to resume both onshore and offshore. Around 4,000 workers are currently mobilised, with approximately 80% being Mozambican nationals. Once completed, the project is expected to produce over 13 million tonnes of liquefied natural gas annually, with first output targeted for 2029. TotalEnergies holds a 26.5% stake in the LNG consortium.
Mozambique’s government has welcomed the restart, describing it as a critical boost for the national economy and a signal of renewed investor confidence. Authorities estimate the project could generate up to US $35bn in state revenues over its lifetime through taxes, profit-sharing and other contributions, while creating thousands of direct and indirect jobs.
Security around the Afungi site has improved following the deployment of Rwandan troops, although sporadic attacks continue elsewhere in Cabo Delgado. Delays have significantly increased costs, prompting TotalEnergies to seek US $4.5bn in compensation from the Mozambican government and to request a 10-year extension to its operating concession.
Despite its economic promise, the project remains controversial. Environmental and human rights organisations have criticised it as a “climate bomb” and argue that it offers limited benefits to a population where more than 80% live below the US $3-a-day poverty line, according to World Bank data. TotalEnergies is also facing legal proceedings in France, including allegations related to security failures and complicity in abuses during the 2021 violence, claims the company strongly denies. Alongside projects led by ENI and ExxonMobil, the Mozambique LNG development could position the country among the world’s top natural gas producers, potentially supplying a significant share of Africa’s gas output in the coming decades.
