PARIS (Realist English). TotalEnergies announced on Friday that it has lifted force majeure on its $20 billion Mozambique LNG project, nearly four years after Islamist militant attacks forced the suspension of construction in the country’s northern Cabo Delgado province.
The French oil and gas giant, which leads the project consortium, notified the Mozambican government by letter, according to a company spokesperson.
However, TotalEnergies said the project will not resume immediately. “Before fully relaunching the project, Mozambique’s council of ministers must approve an addendum to the plan of development,” the company stated. The revised plan includes an updated budget and construction schedule.
The company now expects the 13 million metric ton-per-year LNG project to begin production in 2029, roughly five years later than originally planned.
Rising costs and new negotiations
Security challenges and the multi-year delay have added at least $4 billion to the project’s initial $20 billion cost, according to Indian shareholder Bharat Petroleum, which disclosed the estimate last year. Shareholders are currently in talks with the Mozambican government over how the additional costs will be shared.
TotalEnergies said contracts have already been signed to sell nearly 90% of the project’s future output, with long-term buyers including China’s CNOOC, France’s EDF, and Shell. A portion of the gas will be allocated to Mozambique’s state energy firm ENH.
The Mozambique LNG project, about 40% complete, will restart under strict security conditions. Remaining construction work will take place in “containment mode”, with workers transported only by air or sea, the company told investors at a briefing in late September.
Major offshore gas discoveries over the past decade have turned Mozambique into one of Africa’s most promising energy frontiers, attracting companies such as Italy’s Eni and U.S. major ExxonMobil. But the project’s resumption will test whether Maputo can ensure the stability and security necessary to fully exploit the country’s vast gas reserves.
