At a Glance
- TotalEnergies revives $20 billion Mozambique LNG project after five-year security-related halt.
- Project aims for 13 million tons annual LNG, boosting Mozambique’s gas exports.
- TotalEnergies increases stake, signals strong commitment amid financing and cost challenges.
TotalEnergies SE, the French energy giant, will resume development of its $20 billion liquefied natural gas (LNG) plant in northern Mozambique on Thursday, nearly five years after construction was halted following a deadly attack by Islamist militants.
The company said late last year it was ready to restart work at the Afungi site in Cabo Delgado province. TotalEnergies increased its equity stake after some partners withdrew, underscoring its commitment to the project.
Mozambique President Daniel Chapo and TotalEnergies CEO Patrick Pouyanne are scheduled to attend a ceremony marking the relaunch.
“The resumption of the project represents a significant milestone for the national economy and reaffirms international confidence in Mozambique’s energy sector,” Chapo’s office said. TotalEnergies confirmed the announcement but declined further comment.
Mozambique eyes gas export growth
Security in Cabo Delgado has improved, aided by Rwandan troops deployed around the LNG site. The Islamist insurgency, while weakened, remains a concern.
The LNG project, with an annual production capacity of 13 million metric tons, could make Mozambique a leading gas exporter and boost the economy when production begins in 2029. However, delays, financing challenges, and human rights concerns have complicated progress.
In October, TotalEnergies estimated that costs had risen by $4.5 billion during the project’s pause and requested a 10-year extension of the development period. Mozambique has said it has “counter-arguments” to these claims, and negotiations are ongoing.
TotalEnergies leads Mozambique LNG resumption
TotalEnergies holds a 26.5% stake in the Mozambique LNG consortium. Other partners include Japan’s Mitsui (20%), Mozambique’s ENH (15%), Bharat Petroleum, Oil India, ONGC Videsh (10% each), and Thailand’s PTTEP (8.5%).
The project secured $15.4 billion in financing in 2020 from around 30 lenders, including commercial banks and export credit agencies. Italian contractor Saipem is leading construction.
Construction stopped in 2021, after Islamist militants attacked the town of Palma near the site, forcing a halt to operations. TotalEnergies and partners lifted the force majeure in late 2025 and plan to resume work once government approvals and revised budgets are finalized.
TotalEnergies, has pledged financial support for Mozambique following floods earlier this year. The company produces and markets oil, natural gas, biofuels, hydrogen, renewables, and electricity in roughly 120 countries, employing more than 100,000 people worldwide.
