French energy major TotalEnergies has officially signaled the end of the 'force majeure' clause declared on its flagship Mozambique Liquefied Natural Gas (LNG) project, marking a significant, albeit cautious, return to operations after a nearly five-year hiatus. CEO Patrick Pouyanne confirmed the restart at a ceremony attended by Mozambican President Daniel Chapo, emphasizing the project's critical importance to both the company and the nation's energy transition goals.
The $20 billion undertaking, situated in the northern Cabo Delgado province bordering Tanzania, was abruptly halted following a devastating jihadist assault in 2021 that resulted in significant loss of life, estimated around 800 casualties. The suspension cast a shadow over Mozambique’s aspirations to become a major global LNG exporter, potentially reshaping regional energy supply dynamics.
President Chapo's administration views the resumption as a key validation of recent security improvements and institutional stability, stating it reaffirms 'the confidence of international partners in Mozambique’s energy, institutional and human potential.' This project represents one of the largest single private investments in African energy infrastructure, promising thousands of direct jobs and substantial revenue streams for the state.
However, the operational restart is proceeding under a complex security calculus. While the scale of the 2021 attack has not been repeated, the insurgency, blamed on Islamist insurgents, continues to generate sporadic violence against civilians and security forces. Data from conflict monitors indicate the insurgency has claimed over 6,200 lives since 2017, presenting an ongoing risk factor for long-term capital deployment.
TotalEnergies had previously lifted the force majeure in October, a precursor to this official relaunch. Notably, the company has concurrently pursued compensation claims against the Mozambican government, reportedly seeking $4.5 billion to cover cost overruns directly attributable to the prolonged operational pause.
From a broader economic and climate perspective, the project remains contentious. While proponents laud its potential to elevate Mozambique’s GDP and enhance global LNG supply security, environmental advocacy groups label the development a 'climate bomb.' Critics point to the stark socio-economic realities in the region, where a significant portion of the population resides below the World Bank's poverty line, arguing that the benefits may not trickle down effectively.
This strategic decision by TotalEnergies reflects a calculated equilibrium between substantial energy market opportunities and managing elevated, non-trivial security and political risks. The success of the LNG venture will be closely monitored by international investors as a barometer for the viability of large-scale energy projects in politically sensitive frontier markets.
(Source: Based on reporting from France24)