MAPUTO (Elevation News) — Mozambique’s President Daniel Chapo has hinted that his government may challenge parts of TotalEnergies’ revised budget and schedule for the stalled liquefied natural gas (LNG) project in Cabo Delgado, saying the country will put forward its own counter-arguments.
The French energy giant recently informed Mozambique that project costs had increased by $4.5 billion since operations were halted in 2021 following an Islamist insurgent attack near the construction site. TotalEnergies now estimates the project’s total budget at $20.5 billion and is requesting a 10-year extension to its development and production timeline.
Speaking at a press briefing in Maputo, President Chapo confirmed that the government would review the company’s proposal in detail before agreeing to any changes.
“We will have to sit down and examine the basis for this extension. There may also be counter-arguments from the government,” he said.
Chapo added that the state would also conduct an independent review of the increased costs. “On our side, there will, without doubt, be counter-arguments,” he emphasised.
TotalEnergies, which leads the Mozambique LNG consortium, has yet to respond publicly to Chapo’s remarks. The project was suspended after militants linked to the Islamic State attacked Palma town, close to the LNG site, prompting an evacuation of staff and contractors.
Chief Executive Patrick Pouyanné told investors last week that the venture was now 40% complete and could restart “quickly” once all conditions are met. Despite ongoing security operations and a new defence pact between Mozambique and Rwanda, sporadic attacks continue to disrupt parts of the gas-rich province.
The Mozambique LNG project, one of Africa’s largest energy investments, is expected to transform the country’s economy once fully operational. It is being developed alongside a separate nearby project led by Exxon Mobil, which has also faced delays amid security concerns.
Analysts say the government’s tougher stance reflects growing pressure to safeguard national interests while ensuring foreign investors remain committed. The LNG sector is viewed as central to Mozambique’s economic future, with projected exports capable of turning the country into one of the world’s top gas producers.
