Updated January 29, 2025:

In latest developments, TotalEnergies has noted it is formally restarting the $20 billion Mozambique LNG project. The project sees a restart after a five-year hiatus following Islamic linked violence across Mozambique. The commencement of the project has been continuously pushed in 2025 as the government and TotalEnergies assessed on when to lift the force majuere. The project will re-establish Mozambique as an important player in the global liquefied natural gas market and boost its economy, the state-owned newspaper said. The government is hopeful that the project will have no more hiccups as the president noted his remarks.

President Daniel Chapo is expected to lead a ceremony later on Thursday marking the resumption of the project in the northeastern Cabo Delgado province. TotalEnergies Chief Executive Officer Patrick Pouyanné will also be in attendance. Once complete, the LNG project is expected to be one of Africa’s largest with a production capacity of 13.1 million tons a year. Exports are expected to commence in 2029 coinciding with new production from the U.S and Qatar in the area. Exxon Mobil Corp. is set to reach a final investment decision later this year on an even bigger plant adjacent to Total’s in the southeast African nation. Exxon’s project is anticipated to cost $30 billion and has already been dubbed Africa’s largest LNG project.

Another industrial project that is taking shape in Mozambique is the graphite processing plant in Niassa which is owned by China. Official opening of the project was done on January 30 as President Chapo announced its operationalization. It is already one of the world’s largest graphite processing plants expected to produce 200,000 metric tonnes annually.

January 30, 2025:

French-based TotalEnergies has further delayed its $20 billion liquefied natural gas (LNG) project in Mozambique. The main reason for this is because of the ongoing security concerns, as reported by the Financial Times. The LNG project in the restive Cabo Delgado province has been on hold since 2021. One of the main reasons for this is when an Islamist insurgency threatened the site. Many of the civilians lost their lives in the attacks in a nearby town. These events forced TotalEnergies to declare a force majeure and withdraw all its staff from the construction site. However, the company noted that plans to restart the project by the end of 2024 were also not successful. This is after the violence that followed October’s disputed presidential election. These delays have proven to be detrimental as they put at risk TotalEnergies’ goal to begin production in 2029.

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The Significance of the Mozambique LNG Project

The Mozambique LNG project is expected to be of immense significance once fully commissioned, despite the challenges it faces. The government of Mozambique is committed to ensuring that the plans laid out for the project are implemented. However, this has not been the case since the discovery of the vast natural gas reserve in 2010. Mozambique aims to utilize the 65 trillion cubic feet of recoverable natural gas by constructing two liquefaction units. Each has a capacity of 13 million tons per year (MTPA) with an expansion capacity of 43 million tons annually.

Once completed, the project’s strategic location positions it to respond to diverse markets. Located off the north coast of Mozambique, it can serve the needs of the Atlantic and Asia-Pacific markets. Moreover, it will also facilitate addressing the growing energy demands of the Middle East and Indian subcontinents. The Mozambique LNG project is also expected to provide Mozambicans with professional training, employment, and a source of income. However, despite the challenges, TotalEnergies still remains hopeful in delivering the project as they seek to lift the force majeure.

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