TotalEnergies and Bharat Petroleum Corporation Limited (BPCL) have noted that the long-awaited Mozambique LNG project is expected to commence implementation in July 2025. The project was halted in March 2021 after militant attacks in Cabo Delgado province, when operator TotalEnergies SE invoked force majeure. The project is now progressing, however, with security becoming better and the U.S. Export-Import Bank reaffirming its $4.7 billion funding pledge.
This move is set to revive one of Africa’s most ambitious energy ventures. The Mozambique LNG project has been the recipient of significant foreign investment, with BPCL owning a 10% interest in the project via its subsidiary BPRL Ventures Mozambique BV. While the project is important to many countries, its most significant impact will be experienced by Mozambique itself. With a scheduled end date of July 2028, the development could prove a game-changer for Mozambique’s economy and energy infrastructure, unlocking new avenues to an once-troubled region.
Also read:
US Exim Bank Approves $4.7 Billion for Mozambique LNG Project
Project Factsheet
Project Name: Mozambique LNG Project
Location: Cabo Delgado Province, Mozambique
Operator: TotalEnergies SE (France)
Indian Stakeholders: BPCL (10%), ONGC Videsh, Oil India (Combined 30%)
Status: Force majeure declared in 2021; restart expected by July 2025
Completion Target: July 2028
Key Financier: U.S. Export-Import Bank ($4.7 billion committed)
Economic Impact: Estimated billions in government revenue, job creation, local business development
Social Benefits: Potential improvements in electricity access, healthcare funding, and education infrastructure
Security Progress: Project suspended due to violence attributed to the Islamic State; security situation now improving
Long-term Significance: Expected to transform Mozambique into a major global LNG exporter and strengthen regional economy
Significance of the Mozambique LNG Project
Once complete, the Mozambique LNG is expected to be more than an energy investment as a potential economic game-changer for Mozambique. Once it starts operating, it is expected to provide revenue to the Mozambique government. These funds can be used to improve infrastructure, health, and education in Mozambique. Additionally, the project will create thousands of construction and operating jobs.
In particular, it will also enhance local capacity through the training of employees and cooperation with Mozambican companies. The project also has the ability to improve access to electricity in rural areas through enhanced natural gas supply. Further, increased international attention on Mozambique’s energy sector can promote additional foreign direct investment. As soon as the security situation improves, the Mozambique LNG project can restore investor confidence and create long-term development. With prudent management, it can help Mozambique achieve poverty reduction and economic independence, turning a once vulnerable region into a regional energy giant.
Also read:
Mozambique LNG, the first onshore LNG facility in the southern African country
US Exim Bank Approves $4.7 Billion for Mozambique LNG Project
