TotalEnergies Eyes Restart of $20B Mozambique LNG Project Amid Talks with Government
TotalEnergies and its partners are continuing discussions with the Mozambique government to align on restarting construction of the 12.8 million tonnes per annum (mtpa) Mozambique LNG project, CEO Patrick Pouyanné confirmed during the company’s second-quarter earnings call.
“This is a major project, and we are working to ensure strong alignment between the government of Mozambique and the investors,” Pouyanné told analysts on Thursday.
He emphasized that this alignment is essential before fully re-engaging in the project: “Before restarting, we need to be absolutely certain that there’s a robust partnership in place, especially with regard to security and governance.”
Responding to questions about where misalignment may exist, Pouyanné clarified that his comments were meant to be seen positively. “Don’t interpret this negatively.
We’re simply working to reach that necessary alignment. It’s a $20 billion project—we need to be sure everything is in place.”
Pouyanné reiterated earlier comments that the company is targeting a restart around summer or September, noting, “Give me time. This is a significant undertaking.”
Earlier this year, TotalEnergies had announced plans to resume construction by mid-2024, following the reapproval of a $4.7 billion loan by the Export-Import Bank of the United States to support the project.
TotalEnergies declared force majeure on the Mozambique LNG project in April 2021, withdrawing all personnel from the site after a series of insurgent attacks in the Cabo Delgado region.
The Mozambique LNG development includes the extraction of natural gas from offshore Area 1 and the construction of a liquefaction plant at the Afungi site. It is one of Africa’s largest energy infrastructure projects.
TotalEnergies leads the project alongside partners including Japan’s Mitsui, Mozambique’s national oil company ENH, Thailand’s PTT, and Indian energy firms ONGC, Bharat Petroleum, and Oil India.
The engineering, procurement, and construction (EPC) contract is managed by the CCS JV—a consortium of Saipem, McDermott, and Chiyoda.
In previous statements, Pouyanné had projected that the Mozambique LNG project could begin operations by 2029.
“If we lose six months, that puts us in 2029 or 2030,” he said earlier this year during a corporate presentation in London. “But the goal remains to launch the project.”
