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TotalEnergies Confirms Mozambique LNG Budget at $20.5 Billion, Prepares for Restart

TotalEnergies CEO Patrick Pouyanné confirmed the Mozambique LNG project remains budgeted at $20.5 billion as work transitions toward construction.

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TotalEnergies CEO Patrick Pouyanné has reaffirmed that the company’s Mozambique LNG project remains within a $20.5 billion budget, clarifying media reports that overstated its cost.

Speaking to investors in Paris on 30 October 2025, Pouyanné said the $4.5 billion increase reflects spending during the four years of the project’s suspension under force majeure, rather than a new budget revision.

“I want to be very clear — the project was originally about $15.5 billion, and we have spent $4.5 billion in recent years. The total cost is therefore $20.5 billion, not $25 billion,” he said.

TotalEnergies lifted force majeure on 25 October 2025, and a final restart now depends on the Mozambican government’s approval of the updated budget and project schedule.

Pouyanné said the company has completed discussions with contractors, as well as detailed engineering and procurement work, and is now working towards a 2029 delivery timeline for the LNG facility.

In 2020, TotalEnergies signed a $14.9 billion senior debt financing agreement, with the company contributing an additional $5 billion from its own funds.

Interest in the project has revived following the lifting of force majeure, though Mozambique’s cabinet has yet to take a position on the new financial and operational framework.

The project, suspended since 2021 following an Islamist militant attack, remains under observation amid reports of continuing insurgent activity in the region.

In the company’s latest quarterly results, TotalEnergies reported net income of $4 billion in the third quarter, up from $3.6 billion in the previous quarter. Cashflow reached $7.1 billion, while its integrated LNG business generated $1.1 billion, consistent with the prior quarter, with average LNG prices of around $9 per million British thermal units (Mbtu).

TotalEnergies also advanced its U.S. portfolio after the final investment decision on Rio Grande LNG Train 4 in August.

Commenting on proposals by French lawmakers to raise corporate taxes, Pouyanné noted that 95% of the company’s revenues come from outside France, underscoring its multinational footprint.

Editorial Note:
This article was prepared with the assistance of AI tools to enhance clarity and efficiency.
All information has been reviewed and verified by the HMT News editor.
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