KEY POINTS
- Mozambique’s president says conditions are in place for TotalEnergies to restart its $20B LNG project halted since 2021.
- The project, targeting 13M tons of LNG annually, is now expected online in 2029—five years later than planned.
- Restart would strengthen Mozambique’s role in global energy markets and bolster Europe’s diversification from Russian gas.
Mozambique signaled a breakthrough for one of Africa’s most ambitious energy ventures after President Daniel Chapo said Thursday that conditions have been met for TotalEnergies SE to restart work on its stalled $20 billion liquefied natural gas project.
The French major suspended operations in 2021 when Islamist militants attacked Palma, a coastal town near the project site in Cabo Delgado. The violence forced a mass evacuation and cast doubt over the future of what was set to be one of the largest natural gas export facilities on the continent.
Speaking in Maputo during a ceremony to mark Eni SpA’s final investment decision on a separate offshore development, Chapo said, “Conditions are met for the lifting of force majeure, and we await the pronouncement of the concession holder shortly.”
Restart Would Be a Major Boost for Mozambique’s Economy
If TotalEnergies confirms the move, it would clear the way for construction to resume on a project designed to produce 13 million metric tons of LNG a year. That’s about 1.7% of global output, underlining Mozambique’s potential to become a significant supplier to energy-hungry markets in Europe and Asia.
The facility, initially expected online by 2024, is now slated to start production in 2029—five years later than planned. TotalEnergies declined to comment on Chapo’s remarks, underscoring the sensitivity around the decision and the lingering security concerns in Cabo Delgado despite stepped-up regional military efforts.
For TotalEnergies, the world’s second-largest listed LNG producer, the megaproject represents both risk and opportunity. The development would allow the company to chip away at the lead of rival Shell Plc while reinforcing Europe’s pivot away from Russian gas supplies.
The restart could also reshape Mozambique’s economic trajectory, bringing in billions of dollars in export revenues and foreign investment while creating jobs in one of the world’s poorest nations.
