French energy giant TotalEnergies relaunched its $20 billion liquefied natural gas (LNG) project in Mozambique on Thursday, five years after operations were halted due to escalating regional instability. The official resumption was jointly announced by TotalEnergies Executive Patrick Pouyanne and Mozambican President Daniel Chapo near the construction site in Afungi, Cabo Delgado province.
This project, positioned as one of the continent’s largest LNG developments, was suspended in 2021 as Mozambican forces, supported by regional partners, fought to contain insurgency activity that has reportedly killed over 6,400 people in the past eight years, according to the Armed Conflict Location and Event Data Project (ACLED).
Once operational, the facility is designed to produce more than 13 million tonnes of LNG annually, potentially generating as much as $35 billion for the government via taxes and profit sharing over its lifespan, President Chapo stated, as reported by Reuters.
TotalEnergies confirmed the restart, projecting substantial economic uplift, including the creation of up to 7,000 direct jobs during construction, with local contracts anticipated to exceed $4 billion. The company attributes the improved security environment, which facilitated the relaunch, partly to the deployment of Rwandan military forces near the Afungi hub.
However, the multi-year delay has imposed significant financial penalties, necessitating renegotiations among project partners. Furthermore, environmental and human rights organizations continue to voice strong opposition to the development.
Campaign groups, including Friends of the Earth, labeled the venture a "carbon timebomb" and cited historical links to alleged human rights abuses, including forced displacement in the region. This critique is amplified by data showing over 80% of Mozambicans lived below the $3 per day poverty line in 2022, according to World Bank figures.
TotalEnergies currently faces two separate legal challenges in France, including a manslaughter investigation related to the 2021 attack and a complaint alleging complicity in war crimes filed by the European Center for Constitutional and Human Rights (ECCHR).
The project's continuation proceeds despite the United Kingdom government announcing the withdrawal of $1.15 billion in export finance support last month, suggesting continued geopolitical and financial scrutiny surrounding the venture.
