TotalEnergies, the French energy giant, has announced another delay to its liquefied natural gas (LNG) project in Mozambique, which was once hailed as a game-changer for the nation’s economy. The decision comes amid escalating violence and political instability, particularly in the Cabo Delgado province, and pushes the project’s expected production start date to 2029.
Launched in 2019 after a final investment decision, the Mozambique LNG project represented the largest foreign direct investment project in Africa at the time. The $20 billion (€19.14 billion) initiative was expected to provide a much-needed economic boost to the nation, transforming its energy sector and positioning Mozambique as a key player in the global LNG market.
However, armed uprisings in the northern Cabo Delgado province forced TotalEnergies to declare force majeure in 2021, halting work indefinitely. Insurgent attacks near the project site, which was critical for gas liquefaction, prompted the evacuation of personnel and a complete shutdown of operations.
While TotalEnergies initially aimed to resume operations by the end of 2024, the situation deteriorated following Mozambique's contested October presidential elections. Violent protests erupted across the country, leading to the loss of lives and disruptions to businesses, ports, and borders.
Speaking at the company’s Investor Day in October 2024, TotalEnergies CEO Patrick Pouyanné highlighted the risks posed by ongoing unrest. The company has opted to delay operations further to prioritize the safety of its personnel and assets.
In a statement from 2021, TotalEnergies expressed its solidarity with Mozambique and its people, emphasizing the need for sustained security and stability in Cabo Delgado. The company stated "Considering the evolution of the security situation in the north of the Province of Cabo Delgado, in Mozambique, we confirm the withdrawal from Afungi of all personnel from the Mozambique LNG Project. This situation leads TotalEnergies EP Mozambique Area 1, Lda. (TEPMA1), as operator of the Mozambique LNG Project, to declare force majeure."
Despite the setbacks, there may be hope for a turnaround. Mozambique and Rwanda have entered into a partnership that has seen thousands of Rwandan troops deployed to restore order in Cabo Delgado. This increased regional cooperation could pave the way for renewed confidence in the project’s viability.
The delay is a significant blow to Mozambique, as the LNG project was anticipated to play a central role in driving economic growth, creating jobs, and reducing poverty. The prolonged suspension underscores the challenges faced by international investors in regions grappling with security issues and political uncertainty.
While TotalEnergies has reiterated its commitment to the Mozambique LNG project, the timeline remains uncertain. The company will closely monitor developments in the region, particularly the effectiveness of joint efforts to restore stability. For now, Mozambique must navigate its way through these challenges to unlock the transformative potential of this multi-billion-dollar investment.