TotalEnergies Resumes $20bn Mozambique LNG Project After Security Improvements
TotalEnergies Resumes $20bn Mozambique Gas Project

TotalEnergies Restarts Major Mozambique Gas Project Following Security Gains

French energy conglomerate TotalEnergies has officially resumed operations at its massive $20 billion liquefied natural gas project in northern Mozambique, marking a significant development for both the company and the African nation. The announcement was made on Thursday during an event attended by Mozambique's President Daniel Chapo at the project site in Afungi, located within the resource-rich Cabo Delgado region.

Project Restart After Three-Year Suspension

The ambitious LNG initiative, which represents one of Africa's largest energy investments, had been suspended since April 2021 due to escalating insurgent violence in the area. The conflict resulted in thousands of fatalities and displaced over one million people from their homes, creating significant security challenges around the project location.

TotalEnergies CEO Patrick Pouyanné declared the "full restart" of operations, confirming that the force majeure status has been lifted. The company now anticipates first gas deliveries from the facility by 2029, with Pouyanné promising "a massive ramp-up of activity in the coming months" as work progresses toward this target.

Security Improvements Enable Return

The decision to resume operations follows substantial improvements in regional security. Mozambique had previously enlisted military support from both the Southern African Development Community and Rwandan forces to combat the insurgency. While SADC troops withdrew in 2024 following the expiration of their mandate, Rwandan forces have remained deployed in the area.

Although sporadic clashes continue to occur, the overall security situation has improved sufficiently to allow the project's recommencement. This development represents a crucial test for President Chapo, who was elected in 2024 with commitments to enhance security and stimulate economic recovery across Mozambique.

Economic Transformation and Regional Impact

President Chapo emphasised the project's importance in changing perceptions about Cabo Delgado, stating that its resumption would help shift "prejudice that in Cabo Delgado it's all about terrorism." He described the restart as "a decisive step in the strategy of Mozambique to develop its resources, grow its economy, create jobs" and "a milestone for the resumption of economic growth and confidence in the future."

The project is expected to generate billions of dollars in revenue for the Mozambican government, which holds a minority stake alongside investors from India, Japan, and Thailand. For a nation of 34 million people struggling with economic challenges, this represents a potentially transformative development that could significantly boost national prosperity.

Employment and Community Benefits

Pouyanné highlighted that the project would deliver "jobs and prosperity" to the region while contributing to long-term peacebuilding efforts. More than 4,000 workers will be employed on the project, with approximately 80% being Mozambican nationals. The initiative includes training programmes for young people in various trades such as carpentry and electrical work, providing valuable skills development alongside employment opportunities.

In a separate commitment, TotalEnergies has pledged to provide humanitarian aid following recent devastating floods in the region. According to United Nations reports, the deluge earlier this month claimed approximately 300 lives across Mozambique and neighbouring South Africa and Zimbabwe, highlighting the ongoing challenges facing the region even as economic development progresses.

The resumption of this major energy project represents a significant turning point for Mozambique's economic prospects and demonstrates growing confidence in the security situation within Cabo Delgado province. As operations scale up in the coming months, the world will be watching to see whether this substantial investment can deliver on its promise of economic transformation while maintaining stability in a region that has experienced considerable turmoil in recent years.