PARIS (Elevation News) — French energy giant TotalEnergies says it is ready to restart its Mozambique LNG project with an updated budget of $20.5 billion, following years of delay due to security challenges in the country’s north.
Speaking to investors in Paris, Chief Executive Patrick Pouyanné clarified that the media had misinterpreted the company’s correspondence with Mozambique’s government regarding the cost of the project. Reports had suggested the budget had ballooned to $25 billion, but Pouyanné insisted the figures had been misunderstood.
“I want to be very clear and strong on this point,” he said. “The budget was around $15.5 billion previously, and $4.5 billion is what we’ve spent in these past years. So the total is not $25 billion but $20.5 billion.”
The clarification follows a letter from TotalEnergies to Mozambican President Daniel Chapo, requesting approval for the updated costs. The company also sought a ten-year extension to its development and production period to compensate for the four-year freeze that began in 2021, when Islamist militants attacked Palma, near the project site in Cabo Delgado.
TotalEnergies lifted the force majeure on the project last week, signalling a gradual return to operations, although a full restart depends on the Mozambican government’s approval of the revised budget. President Chapo recently stated that his government may offer counter-arguments to some of the company’s proposals, noting that Mozambique would conduct its own cost review before agreeing to any adjustments.
“We will have to sit down and examine the foundations for this extension,” Chapo said earlier this week. “There may also be counter-arguments from the government.”
The Mozambique LNG project, located on the Afungi Peninsula, was originally launched as one of Africa’s largest natural gas developments, designed to export 13.1 million tonnes of LNG per year. The project is led by TotalEnergies with partners including Japan’s Mitsui, India’s ONGC Videsh, and Mozambique’s ENH (Empresa Nacional de Hidrocarbonetos).
In 2020, Total signed a $14.9 billion senior debt financing agreement for the project, one of the largest of its kind in Africa. At that time, the total cost was estimated at $20 billion, with TotalEnergies contributing the remaining $5 billion not covered by debt.
Although the project is about 40% complete, it has been on hold since 2021, when escalating violence forced the evacuation of staff. Security in Cabo Delgado has improved since the deployment of Rwandan and Southern African Development Community (SADC) troops, though sporadic attacks persist in some areas.
Pouyanné said TotalEnergies was confident the project could resume quickly once all approvals were secured, adding that the company remained “fully committed to Mozambique and its long-term energy development.”
The project’s revival is seen as critical for Mozambique’s economy, which could become one of the world’s top LNG exporters alongside Qatar and the United States. However, analysts warn that the government must strike a balance between foreign investor confidence and sovereign control over resource revenues.
Neighbouring energy giants such as ExxonMobil are developing separate LNG projects in the region, underscoring the strategic importance of Mozambique’s vast natural gas reserves to both Africa and global markets.
