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TotalEnergies is taking steps to revive its $20 billion Mozambique LNG project

TotalEnergies has lifted the four-year force majeure on its $20 billion Mozambique LNG project, with operations expected to start in 2029 pending government approval of an updated plan.
Photo source: TOTAL

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MAPUTO / PARIS — French energy giant TotalEnergies and its partners have officially lifted the four-year force majeure on their $20 billion Mozambique LNG project, marking the long-awaited restart of one of Africa’s most significant gas developments.

The declaration, sent to the Mozambican government on October 24, 2025, comes after years of suspension due to Islamist attacks in Cabo Delgado province, which forced the evacuation of workers and halted construction in 2021.

A spokesperson for TotalEnergies informed Reuters that the project will only resume after the Council of Ministers approves an updated development plan, budget, and schedule. “Before fully relaunching, Mozambique’s Council of Ministers needs to approve an addendum to the development plan,” the company stated.

The project, located at Afungi, is currently about 40% complete, with engineering work 90% finished and turbine fabrication underway overseas. The remaining work will proceed under a “containment mode,” with personnel transfers limited to air and sea routes for security reasons.

According to India’s Bharat Petroleum, a project partner, security costs and the four-year delay have added approximately $4 billion to the original capital expenditure, bringing the total investment closer to $24 billion.

Italy’s Saipem to serve as the main EPC contractor, while McDermott (U.S.) and Chiyoda (Japan) now play secondary roles, both facing financial challenges.

TotalEnergies leads the Mozambique LNG project with a 26.5% stake, alongside Mitsui (20%), ENH (15%), Bharat Petroleum, Oil India, and ONGC Videsh (10% each), and PTTEP (8.5%).

The operator expects to produce the first gas in 2029, roughly five years later than originally planned. Nearly 90% of the project’s LNG output has already been contracted under long-term agreements with CNOOC (China), EDF (France), and Shell (UK), while a portion of the gas is reserved for Mozambique’s domestic consumption through the state utility ENH.

Source: Reuters, Upstream

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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