TotalEnergies Set to Restart Mozambique LNG Project with $20.5 Billion Budget After Four-Year Freeze
French energy giant TotalEnergies is preparing to restart its long-delayed Mozambique LNG project, with a confirmed budget of $20.5 billion, Chief Executive Officer Patrick Pouyanné told investors on Thursday.
Pouyanné clarified that media reports had misinterpreted his recent letter to Mozambique’s president, which requested government approval for a $4.5 billion cost adjustment related to the project’s four-year suspension under force majeure.
“I want to be very clear on this point,” Pouyanné said. “The budget was around $15.5 billion previously, and $4.5 billion is what we’ve spent in these past years. So the total is not $25 billion but $20.5 billion.”
TotalEnergies lifted force majeure on the project last week, signalling a return to operations after the prolonged halt triggered by security concerns in Cabo Delgado province.
However, the final restart remains contingent on the Mozambican government’s approval of the revised budget.
In 2020, TotalEnergies secured a $14.9 billion senior debt financing agreement for the project. At the time, Chief Financial Officer Jean-Pierre Sbraire described the total project cost as $20 billion, with TotalEnergies providing an additional $5 billion in equity financing.
Once operational, the Mozambique LNG project is expected to play a key role in global energy supply, positioning the country as one of the world’s leading natural gas exporters while supporting regional economic growth and energy diversification.
