KEY POINTS
- TotalEnergies asks Mozambique for approval to raise LNG project costs by $4.5bn after years of delays.
- The French energy major also seeks a 10-year extension and changes in cost-recovery terms with the state oil firm.
- First gas shipment is now expected in 2029, five years later than initially planned.
French energy giant TotalEnergies is seeking government approval from Mozambique to raise the development cost of its massive liquefied natural gas (LNG) project by an additional $4.5 billion, after years of suspension triggered by a wave of militant attacks in the northern Cabo Delgado region.
The request, according to a letter from TotalEnergies Chief Executive Patrick Pouyanne to Mozambique’s President Daniel Chapo, is aimed at covering expenses that piled up during the three-year closure of the site, which has been under force majeure since 2021.
The $20 billion project, one of Africa’s largest private investments, was halted following deadly insurgent attacks that displaced thousands and crippled operations.
Project Resumes After Years of Turmoil
Pouyanne confirmed that TotalEnergies and its partners have now lifted the force majeure status, a move signalling renewed confidence in Mozambique’s improving security environment.
The resumption could provide a much-needed boost to the nation’s fragile economy, which has been counting on LNG exports to anchor future growth and generate billions in state revenue.
Despite the disruption, progress has been made in other key areas, including the reapproval of US export credit financing and the mobilisation of major contractors back to the Afungi site.
The French company’s renewed commitment reflects growing optimism that Mozambique can reassert itself as a rising gas producer on the global stage.
TotalEnergies’ letter also disclosed that the first LNG cargo from the initial production line is now expected in the first half of 2029, a significant delay from the original schedule of July 2024. The second production line’s output is forecast for later that same year.
