Mozambique is reviving its significant $20 billion liquefied natural gas (LNG) initiative in collaboration with TotalEnergies, marking a pivotal moment in the nation's economic landscape. This relaunch occurred during a ceremony on January 29, 2026, almost five years after the project faced an unexpected halt due to a violent attack by Islamist militants.
The construction of this ambitious project was suspended back in 2021, but now, under the leadership of TotalEnergies, which has stepped in with additional equity following the withdrawal of some financial backers, work is set to resume in Cabo Delgado province. TotalEnergies announced its readiness to restart operations late last year, igniting renewed optimism for the project’s future.
"Expect to see a significant increase in activity in the coming months... the first offshore vessel has already been mobilized to start laying down the necessary infrastructure," TotalEnergies CEO Patrick Pouyanne stated during the ceremony held in Afungi, close to the project site. Moreover, in a show of goodwill, the company pledged 200 million meticals (approximately $3.2 million) to assist Mozambique in recovering from the recent flooding that has impacted the region.
Mozambican President Daniel Chapo expressed his excitement about the reactivation of the LNG project, indicating that construction on the Rovuma LNG project—which is led by ExxonMobil and shares certain facilities with Total’s venture—could commence within the next 12 to 18 months. He highlighted the significance of this project as a vital step towards harnessing Mozambique's resources, stimulating economic growth, creating job opportunities, and establishing the country as a key player in the global natural gas market.
TotalEnergies has already invested in training approximately 4,500 local workers, with another 1,500 young individuals currently receiving training in essential skills such as carpentry and electrical work at a facility in Palma, near the project's location. Chapo emphasized that this undertaking could potentially add as much as $35 billion to the national treasury over its operational lifetime through taxes, oil profits, and other contributions.
While security conditions have improved in Cabo Delgado, largely due to the deployment of Rwandan troops around the construction area, the threat from the Islamist insurgency still lingers. The project, anticipated to produce 13 million metric tons of LNG annually, is poised to transform Mozambique into a major gas exporter, which could significantly alter the economic landscape upon its expected production start in 2029. However, it has faced ongoing challenges related to security, financing, and human rights concerns, which have deterred some investors.
In a communication sent to President Chapo last October, TotalEnergies estimated that costs associated with the project had escalated by $4.5 billion during the period it was inactive. The consortium has suggested extending the development and production timeline by an additional ten years as partial compensation for these increased expenses. It remains uncertain whether any agreements have been reached regarding these financial disputes, especially after Chapo indicated that Mozambique had its own counterarguments concerning the proposed costs.
During the ceremony, Pouyanne urged for careful budget management, noting that the government is closely monitoring expenditures. Despite the previous setbacks, TotalEnergies remains committed to achieving its goal of initiating gas production by 2029.
Within the Mozambique LNG consortium, TotalEnergies holds a 26.5% share, while Japanese firm Mitsui owns 20%, and the state-owned Empresa Nacional de Hidrocarbonetos (ENH) has a 15% stake. Other contributors include Bharat Petroleum, Oil India, and ONGC Videsh, each with a 10% interest, and Thailand's PTTEP, which retains the remaining 8.5% stake.
