TotalEnergies to Restart $20 Billion Mozambique Gas Project

TotalEnergies has announced its decision to restart the $20 billion liquefied natural gas project in Mozambique, lifting a suspension that was imposed in March 2021 due to escalating jihadist violence. The company stated that the consortium it leads will resume work on the Mozambique LNG project, pending approval from the Mozambican government. This significant step could pave the way for Mozambique to become one of the world’s largest suppliers of liquefied natural gas.

The suspension, categorized as “force majeure,” was enforced after a deadly attack by militants near the project site that resulted in approximately 800 fatalities. TotalEnergies confirmed that President Daniel Chapo was informed of the decision on Friday, according to their official statement. Local news outlet Zitmar initially reported the development, indicating a renewed focus on the project, which represents the largest private investment in Africa’s energy sector.

Job Creation and Economic Potential

The Mozambique LNG project has the potential to create thousands of jobs, significantly boosting the local economy. The African Development Bank estimated in 2018 that Mozambique holds over five trillion cubic metres of natural gas, sufficient to supply major European countries like Britain, France, Germany, and Italy for two decades.

Since the initial suspension, while there have not been any attacks of equal severity, the jihadist insurgency continues to affect the region. The United Nations reported over 633 attacks against civilians in the current year alone, underscoring the challenges that remain for the security situation in Mozambique.

Chapo, currently visiting the United States, is scheduled to meet with executives from ExxonMobil at their headquarters. ExxonMobil has expressed that its decision regarding the Rovuma LNG project is contingent upon TotalEnergies lifting its suspension. The resumption of work on the Mozambique LNG project could, therefore, have wider implications for foreign investment and development in the region.

The consortium led by TotalEnergies holds a 26.5 percent stake in the project. If all goes as planned, the consortium anticipates that it could commence initial LNG deliveries within four years of the project’s restart.

The renewed commitment to the Mozambique LNG project reflects a broader trend of investment in African energy resources, which are increasingly seen as vital to meeting global demand. With the right security measures in place, Mozambique stands to benefit immensely from its rich natural gas reserves, marking a significant opportunity for both local and international stakeholders.