TotalEnergies is set to restart US $20bn Mozambique LNG project. This follows a lift of force majeure on the project after a four-year suspension caused by Islamist insurgent attacks in Cabo Delgado province.
The French energy company confirmed the report and said the consortium developing the project has formally informed the Mozambican government of its decision to lift the contractual halt. However, the relaunch still depends on government approval of an updated development plan and budget, including an estimated additional US $4.5bn in costs.
In a letter to President Daniel Chapo, TotalEnergies Chief Executive Patrick Pouyanné requested approval for the revised budget and a four-and-a-half-year extension to the project timeline. Under the updated schedule, the first shipments of liquefied natural gas are now expected in early 2029, five years later than the initial target of July 2024.
READ: Angola bags US $232M deal for ProÁgua water infrastructure project
Mozambique LNG project
The Mozambique LNG project is one of Africa’s largest energy developments. Located on the Afungi Peninsula near the Tanzanian border, the project aims to produce up to 13 million tonnes of LNG per year in its first phase, with total capacity reaching 43 million tonnes annually once fully developed. The project is expected to generate thousands of jobs and transform Mozambique into one of the world’s leading LNG exporters.
The development, which is now about 40% complete, was halted in March 2021 following a deadly attack in the nearby town of Palma that killed hundreds of people. Since then, Mozambican and Rwandan forces have worked to stabilize Cabo Delgado, allowing TotalEnergies and its partners to reassess security conditions.
Engineering works for the project are reported to be 90% complete, with key components such as gas turbines already under construction overseas. Italy’s Saipem remains the main EPC contractor, while the U.S.-based McDermott and Japan’s Chiyoda have reduced roles due to financial challenges.
TotalEnergies said that while Mozambique’s Council of Ministers must approve an addendum to the plan of development before construction fully resumes, the lifting of force majeure marks a significant milestone in restoring investor confidence in the region.
The project consortium includes TotalEnergies (26.5%), Mitsui of Japan (20%), Mozambique’s ENH (15%), India’s Bharat Petroleum, Oil India, and ONGC Videsh (10% each), and Thailand’s PTTEP (8.5%). Most of the LNG output about 90% has been contracted under long-term supply agreements with companies including CNOOC (China), EDF (France), and Shell (UK).
The revival of Mozambique LNG also bodes well for ExxonMobil’s adjacent Rovuma LNG project, which has awaited clarity on regional security before moving forward. ExxonMobil executives recently met with President Chapo to discuss the safety of future operations.
