Mozambique may soon see the revival of its stalled $20 billion liquefied natural gas (LNG) project as President Daniel Chapo confirmed that discussions with French energy giant Total Energies are approaching conclusion.
Chapo, speaking in an interview published on July 19, noted that the talks could wrap up by August, marking a major breakthrough since the project was halted in 2021.
This was disclosed during a media briefing following his meeting with Total Energies Chief Executive Officer, Patrick Pouyanne, in Maputo, Mozambique’s capital, on July 10.
“I was with Mr Pouyanne two weeks ago and things are going well,” Chapo said. “In August, we will close our talks.”
The Mozambique LNG project, located in Cabo Delgado Province, was suspended after Islamic State linked militants escalated attacks in the region.
In response, Total Energies declared force majeure and evacuated its workers in 2021.
The violence, which began in 2017, disrupted multiple energy investments and stalled nearly $50 billion worth of LNG developments, including those by Eni and Exxon Mobil.
“We have the small problem of jihad, terrorism,” Chapo stated in a separate conversation with Bloomberg. “The region is more stable than four years ago. It’s not heaven, but it’s much better.”
Mozambique’s efforts to restore peace include the deployment of troops from Rwanda and Southern African Development Community (SADC) nations, which have reduced militant activity in the gas rich region.
Although Total Energies has not formally announced a restart date, people familiar with the matter said construction teams are already preparing to resume site operations.
In parallel, Italian oil company Eni is said to have awarded a contract to Samsung Heavy Industries to build a second floating LNG unit, Coral North.
The facility will complement the existing $7 billion Coral South project, which began exports in 2022.
LNG sector key to Mozambique’s growth
Mozambique holds some of the largest untapped natural gas reserves globally, with offshore discoveries in the Rovuma Basin potentially transforming the country’s economic trajectory.
If developed fully, the country could supply up to 10% of global LNG demand.
The Mozambique LNG project initially led by Anadarko Petroleum before being acquired by Total Energies is considered the country’s flagship energy investment.
Analysts believe the project’s revival could inject billions of dollars into national revenue, create thousands of jobs, and drive infrastructure growth in one of the world’s poorest nations, where over 60% of the population lives in poverty.
“Mozambique needs these investments. The people need them. The world needs the energy,” Chapo noted.
However, observers warn that while military gains have brought relative calm, lasting security and transparency will be essential to sustaining investor confidence and ensuring local communities benefit from the gas boom.
