TotalEnergies: Mozambique LNG project remains suspended pending security guarantees

The Mozambique LNG project, led by TotalEnergies, remains frozen since 2021. The restart of this $20 billion gas mega-project depends on restoring security in the Cabo Delgado region and lifting the ""force majeure"" clause.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

The Mozambique LNG project, spearheaded by TotalEnergies, remains on hold, three years after its suspension in 2021. This decision was initially made following a jihadist attack near the site in the Cabo Delgado province, located in northern Mozambique. The region, rich in gas reserves, has been a target of armed groups affiliated with the Islamic State since 2017.

TotalEnergies has stated that the project’s resumption, representing a total investment of $20 billion, is conditional on restoring security in the province and officially lifting the “”force majeure”” clause. This contractual mechanism allows a company to suspend its obligations in the face of unpredictable and insurmountable events.

Delayed objectives despite progress

In October 2024, Patrick Pouyanné, CEO of TotalEnergies, informed investors that production could begin in 2029, provided the project restarts by the end of 2024. He mentioned relative progress in terms of security on the ground but noted that the agreement of three credit agencies was still awaited to finalize project financing.

However, several hurdles remain. The group is particularly awaiting political guarantees after contested presidential elections in the country. The recently re-elected president, Daniel Chapo, inaugurated in January 2025, has yet to meet with Patrick Pouyanné, a meeting initially planned after the elections.

Controversies and calls for investigations

In addition to security challenges, accusations of abuses involving military forces protecting the site have emerged. In September 2024, Politico reported allegations of torture and abuse, which the Mozambique LNG subsidiary denied, asserting the absence of evidence to support these claims.

A coalition of 126 NGOs recently criticized the lack of initiatives supporting an international investigation into alleged civilian massacres. These NGOs, including Urgewald and Friends of the Earth, accused financial institutions involved in the project of failing to take a public stance on these incidents.

A market focused on Asia

Designed primarily to supply Asian customers, the Mozambique LNG project is strategically important in the context of rising global demand for liquefied natural gas. TotalEnergies holds a 26.5% stake, alongside other partners such as the Japanese group Mitsui (20%).

However, political and security issues in Cabo Delgado remain significant obstacles to resuming activities. As the global gas market evolves rapidly, uncertainties in Mozambique raise questions about the project’s ability to meet investor and consumer expectations in the medium term.

Symbion Power announces a $700 M investment for a 140 MW plant on Lake Kivu, contingent on full enforcement of the cease-fire signed between the Democratic Republic of Congo and Rwanda.
Cross-border gas flows decline from 7.3 to 6.9 billion cubic feet per day between May and July, revealing major structural vulnerabilities in Mexico's energy system.
Giant discoveries are transforming the Black Sea into an alternative to Russian gas, despite colossal technical challenges related to hydrogen sulfide and Ukrainian geopolitical tensions.
The Israeli group NewMed Energy has signed a natural gas export contract worth $35bn with Egypt, covering 130bn cubic metres to be delivered by 2040.
TotalEnergies completed the sale of its 45% stake in two unconventional hydrocarbon concessions to YPF in Argentina for USD 500 mn, marking a key milestone in the management of its portfolio in South America.
Recon Technology secured a $5.85mn contract to upgrade automation at a major gas field in Central Asia, confirming its expansion strategy beyond China in gas sector maintenance services.
INPEX has finalised the awarding of all FEED packages for the Abadi LNG project in the Masela block, targeting 9.5 million tonnes of annual production and involving several international consortiums.
ONEOK reports net profit of $841mn in the second quarter of 2025, supported by the integration of EnLink and Medallion acquisitions and rising volumes in the Rockies, while maintaining its financial targets for the year.
Archrock reports marked increases in revenue and net profit for the second quarter of 2025, raising its full-year financial guidance following the acquisition of Natural Gas Compression Systems, Inc.
Commonwealth LNG selects Technip Energies for the engineering, procurement and construction of its 9.5 mn tonnes per year liquefied natural gas terminal in Louisiana, marking a significant milestone for the American gas sector.
Saudi Aramco and Sonatrach have announced a reduction in their official selling prices for liquefied petroleum gas in August, reflecting changes in global supply and weaker demand on international markets.
Santos plans to supply ENGIE with up to 20 petajoules of gas per year from Narrabri, pending a final investment decision and definitive agreements for this $2.43bn project.
Malaysia plans to invest up to 150bn USD over five years in American technological equipment and liquefied natural gas as part of an agreement aimed at adjusting trade flows and easing customs duties.
The restart of Norway’s Hammerfest LNG site by Equinor follows over three months of interruption, strengthening European liquefied natural gas supply.
Orca Energy Group and its subsidiaries have initiated arbitration proceedings against Tanzania and Tanzania Petroleum Development Corporation, challenging the management and future of the Songo Songo gas project, valued at $1.2 billion.
Turkey has begun supplying natural gas from Azerbaijan to Syria, marking a key step in restoring Syria’s energy infrastructure heavily damaged by years of conflict.
Canadian group AltaGas reports a strong increase in financial results for the second quarter of 2025, driven by growth in its midstream activities, higher demand in Asia and the modernisation of its distribution networks.
Qatar strengthens its energy commitment in Syria by funding Azeri natural gas delivered via Turkey, targeting 800 megawatts daily to support the reconstruction of the severely damaged Syrian electricity grid.
Unit 2 of the Aboño power plant, upgraded after 18 months of works, restarts on natural gas with a capacity exceeding 500 MW and ensures continued supply for the region’s heavy industry.
New Zealand lifts its 2018 ban on offshore gas and oil exploration, aiming to boost energy security and attract new investment in the sector.
Consent Preferences