Oil & Gas

TotalEnergies is preparing to restart its $20 billion Mozambique LNG project by the end of September 2025, after years of suspension due to insurgent violence in the Cabo Delgado region. The project, located on the Afungi Peninsula, was halted in 2021 when escalating attacks from armed groups forced the company to declare force majeure.

With recent improvements in regional security, both the Mozambican government and TotalEnergies have expressed readiness to resume operations. High-level meetings between President Daniel Chapo and TotalEnergies CEO Patrick Pouyanné in July 2025 signaled strong political and corporate support for a relaunch.

Security improvements have played a critical role in paving the way for the restart. Joint operations by Mozambican forces, Rwandan troops, and the Southern African Development Community (SADC) have significantly reduced the threat of insurgency near the LNG site.

Government officials have assured stakeholders that the region is now stable enough to support major infrastructure and energy operations. This renewed sense of safety has allowed international financing and contractor negotiations to regain momentum.

On the financial side, a major milestone was reached when the U.S. Export-Import Bank reapproved a $4.7 billion loan for the project. TotalEnergies is now working to secure similar commitments from other export credit agencies, particularly from the UK and Netherlands. At the same time, contractor discussions are underway to finalize cost structures and restart terms. Italian engineering firm Saipem, a key partner, has stated that it expects project activities to resume by the end of summer 2025, matching Total’s own internal targets.

Despite this progress, some hurdles remain. TotalEnergies is carefully negotiating with its contractors to avoid inflated restart costs and manage potential risks. Although the security environment has improved, isolated threats continue in the wider region, prompting the company to proceed with caution. If all conditions are met, and the project resumes as planned, Mozambique LNG could begin production by 2027—positioning the country as a major global LNG exporter and unlocking significant economic benefits for Mozambique’s development.