TotalEnergies resumes work on Mozambique’s $20 billion LNG project, halted since a 2021 jihadist attack, aiming for 2029 production start.
MAPUTO: French energy giant TotalEnergies has relaunched construction on a massive gas project in northern Mozambique after a five-year suspension due to jihadist violence.
Chief executive Patrick Pouyanne announced the full restart of the Mozambique liquefied natural gas project at a ceremony in the gas-rich Cabo Delgado province. “This project will make the region a new source of global security,” Pouyanne said, with production due to start in 2029.
The $20 billion project near the Tanzanian border was suspended after a 2021 jihadist siege on the nearby town of Palma killed an estimated 800 people. TotalEnergies lifted its force majeure suspension in October.
President Daniel Chapo said the project was a day of celebration for Mozambique and Africa. He stated that 17,000 workers would be hired during the construction phase, with over 4,000 already on site, 80% of whom are Mozambican nationals.
The project is expected to generate state revenues of around $35 billion over its lifecycle from taxes and profits. Mozambique’s economic growth is forecast to accelerate to 10% when production begins, according to IMF estimates.
TotalEnergies owns a 26.5% stake in the consortium and is seeking $4.5 billion in compensation for cost overruns linked to the delay. The company is also pushing for a 10-year extension to its concession.
Environmental groups have denounced the development as a major “climate bomb” that would bring little benefit to Mozambicans. More than 80% of the population lived below the poverty line of $3 per day in 2022.
TotalEnergies faces two legal proceedings in France, including a manslaughter investigation, related to the 2021 attack. The company rejects all accusations of failing to protect subcontractors.
The Islamic State-linked insurgency in Cabo Delgado, which began in 2017, has killed more than 6,400 people and displaced tens of thousands. While large-scale attacks have subsided, regular violence including beheadings continues.
