TotalEnergies Restarts $20bn Mozambique LNG Project After Five-Year Shutdown Caused by Insurgency
TotalEnergies has resumed construction of its flagship Mozambique LNG project in the country’s northern Cabo Delgado province, ending a five-year suspension triggered by a deadly jihadist attack that killed hundreds of people.
The Mozambique LNG project, widely regarded as Africa’s largest private-sector energy investment, is expected to generate thousands of jobs and transform Mozambique into a major global exporter of liquefied natural gas.
At a ceremony held near the project site, TotalEnergies Chief Executive Officer Patrick Pouyanné formally confirmed the restart, announcing the official lifting of the force majeure declaration that had been in place since 2021. Mozambican President Daniel Chapo attended the event.
Cabo Delgado has endured nearly eight years of insurgency-related violence. TotalEnergies halted work on the $20 billion project near the Tanzanian border following an attack in 2021 that reportedly claimed around 800 lives.
Pouyanné said more than 4,000 workers are currently active on site, with Mozambicans accounting for approximately 80 per cent of the workforce. TotalEnergies holds a 26.5 per cent stake in the LNG development consortium.
He added that the project would enhance global energy security by bringing a new major gas-producing region onto the international market.
Although TotalEnergies lifted the force majeure in October, the company is now seeking $4.5 billion in compensation from the Mozambican government to recover costs associated with the prolonged delay.
It has also requested a 10-year extension to its concession period more than double the length of the shutdown. Authorities in Maputo have yet to indicate whether the request will be approved.
President Chapo described the project’s restart as a moment of pride for Mozambique, Africa, and the international community, saying it demonstrated the country’s resilience and ability to restore investor confidence after severe setbacks.
The Mozambique LNG development is one of several major gas projects in Cabo Delgado, alongside initiatives led by Italy’s Eni and US-based ExxonMobil.
According to a 2024 Deloitte report, Mozambique’s gas reserves could position the country among the world’s top 10 natural gas producers, accounting for about 20 per cent of Africa’s total gas output by 2040.
The LNG consortium initially secured $15.4 billion in financing from 30 lenders. However, in December 2025, the United Kingdom and the Netherlands withdrew their support, including $1.15 billion pledged by the UK through its export credit agency.
Following those withdrawals, TotalEnergies said the remaining partners unanimously agreed to inject additional equity to ensure the project’s continuation.
