TotalEnergies officially relaunched its $20 billion liquefied natural gas (LNG) project in Mozambique on Thursday, marking the formal end of a nearly five-year suspension. The project in the northern Cabo Delgado province was halted following a significant jihadist attack in 2021 that reportedly resulted in the deaths of approximately 800 people.
TotalEnergies Chief Executive Patrick Pouyanne announced the full restart during a ceremony attended by Mozambican President Daniel Chapo, stating that the force majeure declaration was officially over. The company had previously lifted the force majeure in October, preceding this formal operational restart announcement.
President Chapo's office issued a statement characterizing the resumption as a major milestone for the national economy. The statement further emphasized that the restart reaffirms the confidence held by international partners in Mozambique's institutional and energy infrastructure potential.
This undertaking is reportedly the largest private investment in Africa's energy sector and is projected to significantly boost Mozambique’s standing as a global LNG exporter while creating thousands of domestic jobs. However, the project has faced criticism from environmental groups labeling it a "climate bomb."
TotalEnergies is reportedly seeking $4.5 billion in compensation from the Mozambique government to cover cost overruns incurred during the prolonged operational pause. This financial negotiation underscores the economic stakes involved in restarting such a large-scale infrastructure commitment.
Despite the official restart, security concerns persist in northern Mozambique, where regular attacks against civilians and troops are attributed to ongoing jihadist insurgencies. Conflict monitoring group Acled reports that the insurgency, which began in 2017, has claimed over 6,200 lives to date.
The successful continuation of the LNG development is crucial for Mozambique’s fiscal stability, particularly as World Bank data indicated that over 80% of the population lived below a three-dollar-per-day poverty line in 2022.