French energy major TotalEnergies has announced plans to resume operations on its Mozambique liquefied natural gas (LNG) project by mid-2025 following a four-year suspension due to security concerns in Cabo Delgado province.
The $20 billion LNG project, located in the province’s Palma district, was halted in 2021 after Islamist militants launched an attack on Palma town, forcing the company to invoke force majeure and suspend construction.
TotalEnergies CEO Patrick Pouyanne confirmed that the planned resumption of operations.
“Total Energies and its partners in the giant Mozambique LNG project are planning to restart construction on the 12.8 mtpa (million tonnes a year) project by the middle of this year.”
The decision followed the recent approval of a $5 billion loan from the US Export-Import Bank, which had previously sanctioned financing under President Donald Trump’s first administration but required re-approval after the project’s suspension.
Mozambique’s government also anticipates renewed support from United Kingdom and Dutch export credit agencies, which, along with US financing, would allow TotalEnergies to lift force majeure and resume full operations.
The Mozambique LNG project, where TotalEnergies holds a 26.5-percent stake, was expected to position the country as a major global LNG producer before the 2021 insurgent attack disrupted progress.
With security conditions reportedly improving, the government and TotalEnergies hope to revitalise investment and production, marking a significant step forward for Mozambique’s energy sector.
JN/APA