Mozambique Close to Agreement with TotalEnergies to Resume $20B LNG Project Halted by Insurgency
Mozambican President Daniel Chapo says negotiations with TotalEnergies SE to restart a long-stalled $20 billion liquefied natural gas (LNG) project are nearing conclusion, raising hopes for a major economic boost in one of the world’s poorest nations.
In a July 19 interview, Chapo confirmed that he recently met with TotalEnergies CEO Patrick Pouyanné to discuss the resumption of the Mozambique LNG project, which has been on hold since 2021 due to a violent Islamist insurgency in the country’s northeastern Cabo Delgado province.
“I was with Mr. Pouyanné two weeks ago, and things are going well,” Chapo said. “In August, we will conclude our talks” regarding a timeline for restarting the project, he added.
TotalEnergies suspended operations and declared force majeure in 2021 following an escalation of attacks by Islamic State-linked militants.
The violence forced the evacuation of personnel and disrupted what was then seen as a transformative investment for Mozambique’s economy.
To counter the insurgency, Mozambique has received military support from Rwanda and, temporarily, neighboring Southern African Development Community (SADC) countries.
While the region has seen significant stabilization since the peak of the conflict, security concerns remain.
“We have the small problem of jihad, terrorism,” Chapo remarked. In an earlier interview with Bloomberg in Spain, he acknowledged that although the security situation has improved, “it’s not heaven,” but insisted that restarting the project is essential.
Chapo was scheduled to meet with Pouyanné again on July 10 in Maputo, the Mozambican capital. According to sources familiar with the matter, companies involved in constructing the LNG facility have begun preparing to resume operations.
Meanwhile, energy giant Eni SpA, which operates in the same region, has awarded a contract to Samsung Heavy Industries Co. to build its Coral North floating LNG plant. This facility will complement its $7 billion Coral South project, which is already operational.
If resumed, TotalEnergies’ Mozambique LNG project is expected to play a pivotal role in unlocking an estimated $50 billion in LNG investments across the country.
