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TotalEnergies Moves to Restart Mozambique LNG After Four-Year Halt

The restart hinges on cabinet approval following the company’s request for a decade-long licence extension plus $4.5 billion in delay costs.

Un policier rwandais (à droite) et un soldat rwandais surveillent le projet Mozambique LNG de TotalEnergies à Afungi, dans la province de Cabo Delgado (Mozambique), le 29 septembre 2022.
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Overview

  • TotalEnergies notified Mozambique that it intends to lift force majeure and resume its $20 billion onshore LNG project in Cabo Delgado.
  • A letter dated October 24 and addressed to President Daniel Chapo sought a 10-year extension of the exploitation licence and $4.5 billion to cover incremental costs from the suspension.
  • The first LNG cargo is now projected no earlier than the first half of 2029, a delay from the original July 2024 target.
  • The relaunch still requires the Council of Ministers to approve an addendum updating the project’s budget and work schedule, and the government has not publicly commented.
  • Mozambican and environmental NGOs condemned the requested terms as excessively favorable and risky, while ExxonMobil has tied its Rovuma decision to the lifting of force majeure and Deloitte projects the country could rank among the top 10 gas producers by 2040.