French energy giant Total Energies plans to restart its long delayed $20-billion liquefied natural gas (LNG) project in Mozambique this summer, according to the company’s Chief Executive Officer, Patrick Pouyanné.
The project, which has been under force majeure since 2021 due to a surge in militant attacks in the northern Cabo Delgado region, is now expected to resume construction work within the coming months.
Pouyanné revealed this during a panel session at the Japan Energy Summit held in Tokyo on Wednesday, stating that conditions on the ground have improved and that the company is ready to mobilize development efforts once again.
“We are hopeful that the security situation continues to stabilize. We expect to relaunch project activities this summer,” he said.
The Mozambique LNG project, one of the largest private investments in Africa’s energy sector, was halted three years ago after an escalation of violent attacks near the project site in Palma district, northern Mozambique.
At the time, Total Energies declared force majeure, citing the safety of workers and local communities.
The project comprises the development of the Golfinho and Atum gas fields in the Offshore Area 1 block and the construction of a two train liquefaction facility with a planned capacity of 13.12 million metric tons per annum (MTPA).
Once operational, it will place Mozambique among the top LNG exporters globally, particularly targeting growing Asian markets.
Total Energies is the lead operator of the Mozambique LNG project with a 26.5% interest.
Other major stakeholders include Japan’s Mitsui & Co with 20%, Mozambique’s state owned Empresa Nacional de Hidrocarbonetos (ENH) with 15%, India’s ONGC Videsh, Bharat Petroleum and Oil India with a combined share, and Thailand’s PTTEP.
Security remains a critical concern for the project’s resumption.
The Mozambican government, with support from regional troops from the Southern African Development Community (SADC) and Rwanda, has increased its military presence in the gas rich region to curb insurgent activities.
Over the past year, relative calm has returned to Palma and its environs, encouraging operators and partners to reconsider investment timelines.
Significance for Mozambique and global LNG supply
Mozambique’s LNG potential is considered strategic for global gas markets, especially as Europe seeks alternative sources to Russian gas and Asian demand continues to climb.
The restart of the Mozambique LNG project is expected to drive foreign direct investment into the country and boost government revenues.
In short, the revival of the project would mark a significant step forward for Mozambique’s ambitions to become a major player in the global LNG market.
Analysts have projected that when completed, the project could generate billions of dollars in annual revenue and create thousands of jobs.
Total Energies had previously commissioned an independent review of the humanitarian and security situation in the region.
The findings, published in 2023, pointed to notable progress in resettlement and reconstruction efforts, which played a part in the company’s decision to prepare for a restart.
While Pouyanné stopped short of giving a specific date for the recommencement, he reiterated the company’s readiness to resume as soon as security conditions are deemed sustainably stable.
“We have always believed in the potential of this project for Mozambique and its people. Our commitment remains unchanged,” he said.
