The TotalEnergies-Mozambique LNG project construction has resumed at Afungi in Cabo Delgado, marking a major turnaround for the $20 billion development. TotalEnergies and the Mozambican government announced the full restart of onshore and offshore activities on January 29, 2026. The decision followed nearly five years of suspension after insurgent attacks disrupted construction in 2021.
The project now targets first liquefied natural gas (LNG) production in 2029. Meanwhile, the $4.7 billion US Export-Import Bank financing approval remains a significant component of its funding framework.
The restart followed the consortium’s decision to lift force majeure on November 7, 2025. President Daniel Chapo and TotalEnergies Chief Executive Patrick Pouyanné announced the resumption during a meeting at Afungi. The government also reaffirmed security cooperation with Rwanda to support project execution.
At the January restart, TotalEnergies reported approximately 40% overall project completion. More than 4,000 workers had mobilised, including over 3,000 Mozambican nationals. The company also confirmed that most engineering and major equipment procurement had progressed during the suspension.
TotalEnergies-Mozambique LNG Project advances across Afungi site
The development covers an integrated offshore and onshore gas export complex. Its infrastructure includes offshore production facilities, subsea pipelines and onshore LNG processing trains. Supporting facilities include storage tanks, marine infrastructure, utilities, accommodation and logistics installations.
The project targets approximately 13.1 million tonnes of LNG annually. It will process natural gas from offshore discoveries in the Rovuma Basin’s Area 1 concession. Furthermore, its development could position Mozambique among the world’s significant LNG exporters.
Construction activities now cover several work fronts across the Afungi development site. These include LNG train structures, tank foundations and the Marine Offload Facility. A July 2026 site visit by Mitsui and Japan Bank for International Cooperation highlighted progress across these construction areas. The delegation also inspected supporting infrastructure and community development programs.
Meanwhile, the project expects to generate substantial employment and local procurement opportunities. TotalEnergies anticipates up to 7,000 direct jobs for Mozambicans during construction. It also expects contracts awarded to Mozambican companies to exceed US$4 billion.
TotalEnergies-Mozambique LNG Project funding supports renewed execution
The US Export-Import Bank approved a US$4.7 billion financing amendment on March 13, 2025. The decision revived a 2019 direct-loan commitment previously stalled for approximately four years. The funding supports US exports of equipment and services for the integrated LNG development.
EXIM said the transaction could support approximately 16,400 American jobs. It also identified nearly 70 US suppliers across several states. The financing covers engineering, procurement and construction of the onshore LNG plant, related facilities and offshore activities.
However, the US approval represents only part of the wider financing arrangement. TotalEnergies confirmed in December 2025 that the project had secured approximately $15.4 billion in project financing. Around 90% of external financing had received lender confirmation. The partners replaced the expected contributions from UK Export Finance and Dutch agency Atradius with additional equity.
The development also faces additional costs following its prolonged suspension. Reuters reported that TotalEnergies and Mozambique were negotiating approximately $4.5 billion in suspension-related costs. President Chapo indicated that an audit would inform discussions over revised project costs.
The development forms part of Mozambique’s wider ambition to expand LNG exports through multiple projects. Another major development is Eni’s Coral Norte floating LNG facility in Area 4. That separate $7.2 billion development has secured government approval for its financing structure.
The two developments have different operators, financing arrangements and construction scopes. Nevertheless, their progress will influence Mozambique’s position in international LNG markets. The immediate challenge for the Afungi development remains maintaining construction momentum while managing security, financing and cost pressures.
Also read: TotalEnergies Delays $20 Billion Mozambique LNG Project Once Again
Challenges Facing the Project
Construction works on the project were stopped four years ago due to the Islamic State-linked militant attacks in the area. Totalenergies CEO, Patrick Poyanne, mentioned last month that he was expecting funding from the United States to be approved in coming weeks.
Additionally, funding from other credit agencies will follow in the coming months.
Totalenergies holds a 26.5% operating stake on this LNG project. This project is set to make Mozambique a major LNG producer in Africa.
Project Fact Sheet
Name: TotalEnergies-Mozambique LNG Project.
Location: Afungi Peninsula, Palma District, Cabo Delgado Province, northern Mozambique.
Estimated project cost: $20 billion, excluding additional suspension-related costs under negotiation.
Operator: TotalEnergies.
Development area: Offshore Area 1, Rovuma Basin.
Scope: Integrated offshore gas production, subsea pipelines, onshore processing facilities and LNG export infrastructure.
Planned production capacity: Approximately 13.1 million tonnes of LNG annually.
LNG infrastructure: Two initial liquefaction trains, LNG storage tanks, marine facilities and supporting utilities.
US financing: $4.7 billion approved by the US Export-Import Bank in March 2025.
Overall project financing: Approximately $15.4 billion.
Construction restart: January 29, 2026.
Force majeure lifted: November 7, 2025.
Construction progress: Approximately 40% at the January 2026 restart announcement.
Workforce: More than 4,000 workers mobilised at restart.
First LNG production: Targeted for 2029.
Local employment commitment: Up to 7,000 direct Mozambican construction jobs.
Local procurement: More than $4 billion in contracts expected for Mozambican companies.
Project Team
Developer and Operator: TotalEnergies, holding a 26.5% participating interest.
Joint Venture Partners:
- Mitsui & Co., holding a 20% participating interest.
- Empresa Nacional de Hidrocarbonetos (ENH), holding a 15% participating interest.
- ONGC Videsh Limited, holding a 10% participating interest.
- : Bharat PetroResources Limited, holding a 10% participating interest.
- Oil India Limited, holding a 10% participating interest.
- PTTEP, holding an 8.5% participating interest.
Engineering, Procurement and Construction Contractor: CCS JV, comprising Saipem, McDermott and Chiyoda Corporation.
Major Project Financier: US Export-Import Bank, providing US$4.7 billion in approved financing.
Other Financing Partners: International commercial banks and export credit agencies participating in the wider project financing.
Government Oversight: Mozambique’s Ministry of Mineral Resources and Energy.
Security Coordination: Government of Mozambique, working with Rwanda to support security around the development.
Also read: Proposed Coral Norte FLNG Project in Mozambique enters consultation phase
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