French multinational TotalEnergies has confirmed that it will resume activities on the Mozambique LNG project by mid-2025, which had been suspended since April 2021 due to security instability in Cabo Delgado. The announcement was made by the company’s CEO, Patrick Pouyanné, during the presentation of the fourth quarter results for 2024, last Wednesday (30).
With an estimated total investment of US$20 billion (1.2 trillion meticals), the project was halted following a wave of insurgent attacks in the vicinity of the town of Palma, which led to a declaration of force majeure. Currently, according to the TotalEnergies official, the site is ‘completely secure,’ with only the finalisation of financial arrangements pending for the full reactivation of the project.
‘We hope to restart activities by mid-2025,’ said Pouyanné, stressing that the official lifting of force majeure is conditional on the approval of pending financing and institutional guarantees. Among these, the involvement of the United States Government stands out, whose decision to revalidate its support is expected to be made official in the coming weeks.
Although the initial completion of the project was scheduled for 2027, the need for reapproval of financing could extend the deadline to between 2029 and 2030. The process also involves commitments from other export credit agencies, notably in the United Kingdom and the Netherlands, whose decisions are considered crucial for the consolidation of international financing.
In March 2025, the US ExIm Bank revalidated a loan of US$4.7 billion (296 billion meticals), a step considered crucial to the viability of the recovery. New financing of around US$7 billion (441 billion meticals) is also being considered, to be guaranteed by financial institutions in the United States.
The decision to resume the project was influenced by the significant improvement in security conditions in Cabo Delgado, as a result of joint operations between the Mozambican Defence and Security Forces, SADC troops and military contingents from Rwanda. TotalEnergies has maintained constant dialogue with the national authorities to ensure a resumption that prioritises stability and sustainability.
Mozambique LNG, considered one of the largest liquefied natural gas projects in Africa, is expected to reach an annual production capacity of 12.8 million tonnes in its initial phase. Its completion is seen as a strategic milestone for the Mozambican economy, with the potential to generate significant revenues and position the country as a major player in the international energy landscape.
At the same time, Italy’s Eni continues to expand its presence in Mozambique, with the recent approval of the Coral Norte FLNG offshore project, estimated at US$7.2 billion (453.6 billion meticals) and scheduled to start in 2028. With these developments, Mozambique is consolidating its position as a global energy platform.
Source: Energy Intelligence
