- TotalEnergies has suspended the $20 billion Mozambique LNG project since 2021 due to security risks in Cabo Delgado, and it requires lifting the “force majeure” clause.
- Political instability and allegations of military abuses near the site have complicated efforts to restart the project.
- TotalEnergies aims to begin production by 2029, but the project’s future depends on resolving security and political issues in Mozambique.
TotalEnergies has kept the Mozambique LNG project suspended since 2021. The company halted the project after a jihadist attack near the site in Cabo Delgado, northern Mozambique. Armed groups linked to the Islamic State have targeted the region, rich in natural gas, since 2017.
TotalEnergies stated that the project will not resume until the company restores security in the region. The company also requires lifting the “force majeure” clause, which allows companies to suspend operations due to unpredictable circumstances, such as security threats.
The $20 billion project aims to exploit Mozambique’s enormous gas reserves. TotalEnergies CEO Patrick Pouyanné stated in October 2024 that the company could start production in 2029. However, the project’s restart depends on resuming activities by the end of 2024. Pouyanné acknowledged security improvements but noted that three credit agencies still needed to approve financing.
Several obstacles remain, including political instability after Mozambique’s contested elections. President Daniel Chapo, re-elected in January 2025, has not yet met with Pouyanné. The two had planned a meeting after the elections, but it has not yet occurred.
Along with security challenges, the project faces accusations of military abuses near the site. Politico reported allegations of torture and abuse by military forces in September 2024. The Mozambique LNG subsidiary denied the allegations and stated that no evidence supported the claims.
A coalition of 126 NGOs, including Urgewald and Friends of the Earth, criticised the lack of action on these allegations. The group has called for an international investigation into possible civilian massacres. The NGOs also accused financial institutions involved in the project of failing to take a stance on these issues.
The Mozambique LNG project is key in meeting the growing global demand for liquefied natural gas (LNG), mainly from Asian markets. TotalEnergies holds a 26.5% stake in the project, while Japanese partner Mitsui owns 20%. The project aims to supply LNG to countries across Asia.
However, political instability and security risks continue to delay progress. The Cabo Delgado region remains unstable, posing a significant threat to the project’s resumption. Critics have raised concerns about the government’s ability to secure the site and protect workers.
The ongoing delays have raised doubts about the project’s ability to meet investor and consumer expectations. As the global LNG market evolves, uncertainty about the project’s future grows. The challenges in Mozambique could hinder TotalEnergies’ ability to capitalise on the rising LNG demand.
Despite the challenges, TotalEnergies and its partners continue to monitor the situation. They remain hopeful that security and political conditions will improve. However, without progress on these issues, the company cannot restart the Mozambique LNG project.
The shifting global gas market and the ongoing security situation in Mozambique have created a challenging environment for the project. TotalEnergies and its partners stay committed, but the project’s future depends on resolving these complex challenges.