Mozambique Restarts TotalEnergies’ $20 Billion LNG Project, Marking Major Milestone for African Gas
Mozambique and TotalEnergies have formally restarted the French energy major’s $20 billion liquefied natural gas (LNG) project, nearly five years after operations were suspended following security incidents in the country’s northern Cabo Delgado province.
In a statement released on Thursday, the office of President Daniel Chapo confirmed that the restart was officially marked at the Afungi project site on Mozambique’s northern coast, attended by senior government officials and TotalEnergies executives.
Once completed, the development is expected to be the largest gas project in Africa.
In November 2025, TotalEnergies lifted its force majeure declaration on the project, enabling workers and contractors to return to a site that had remained inactive since 2021.
The company also confirmed that Chief Executive Officer Patrick Pouyanné attended the restart ceremony.
Pouyanné has previously indicated that the project is targeted for completion in 2029, noting that overall costs may increase due to the extended delay.
“You will see a significant ramp-up in activity in the coming months. A first offshore vessel has already been mobilised to begin installing offshore infrastructure,” Pouyanné said in Afungi.
Construction was suspended in early 2021 after escalating violence linked to Islamist insurgents in Cabo Delgado forced the evacuation of personnel and contractors.
Although several restart timelines were considered in subsequent years, progress remained constrained by security concerns, despite support from Rwandan and regional security forces.
Background to the Suspension
The LNG project is located near Palma, an area that became a focal point of attacks in 2021, disrupting both energy operations and surrounding communities.
TotalEnergies and its partners declared force majeure at the time, citing the inability to ensure the safety of personnel and assets.
The decision halted construction of a facility designed to produce 13.1 million tonnes of LNG per year, delaying Mozambique’s planned entry into the global LNG export market.
The suspension also placed additional fiscal pressure on the Mozambican government, which had expected gas revenues to support public finances and debt servicing.
Since then, authorities have focused on restoring stability in the region, enabling energy companies to reassess long-term investment plans.
Improved security conditions have been cited by the government as a key factor in approving the resumption of construction.
Implications for Mozambique and Investors
The LNG plant is now expected to ship its first cargoes in 2029, positioning Mozambique among a new group of LNG exporters over the next decade.
Officials anticipate that the project will generate billions of dollars in state revenue over its lifespan, supporting economic recovery and long-term development.
The restart coincides with forecasts from the International Energy Agency indicating that global LNG supply will reach record levels later this decade.
In parallel, Exxon Mobil is expected to take a final investment decision later this year on a separate LNG project nearby, with a planned capacity of 18 million tonnes per year.
Mozambique has already begun exporting gas, following Italy’s Eni shipping its first LNG cargo in 2022 from the Coral Sul floating LNG facility.
Eni is also developing a second floating LNG unit, expected to increase offshore production to around seven million tonnes annually.
Together, these projects reinforce Mozambique’s position as a key emerging gas producer in East Africa. The resumption of TotalEnergies’ LNG development marks a significant return of large-scale energy investment to the country after years of delays and uncertainty.
