TotalEnergies has announced another delay in the development of its $20 billion liquefied natural gas (LNG) project in Mozambique, citing ongoing security concerns in the Cabo Delgado province. The French energy giant’s decision, reported by the Financial Times, deals a significant blow to Mozambique’s aspirations of becoming a major LNG exporter.
The project, one of Africa’s largest energy investments, has faced repeated setbacks since insurgent attacks began in 2017. The violence escalated in 2021 when militants overran the nearby town of Palma, forcing TotalEnergies to declare force majeure and suspend operations. Despite military interventions by regional forces, including troops from Rwanda and the Southern African Development Community (SADC), the situation remains volatile.
TotalEnergies CEO Patrick Pouyanné emphasized that the safety of workers and the local community is the company’s top priority. We cannot proceed with full-scale operations until we are confident that the security situation is stable and sustainable, he said in a recent statement. The company had previously indicated a tentative timeline for resuming work in 2024, but ongoing insurgent activity and limited progress in restoring stability have led to further delays. According to analysts, the project’s postponement highlights the challenges of operating in conflict-prone regions, where geopolitical risks can undermine even the most promising ventures.
The delay is a major setback for Mozambique’s economy, which has pinned hopes on the LNG sector to drive growth, generate jobs, and boost government revenues. Once operational, the project is expected to produce 13.1 million tons of LNG annually, transforming Mozambique into one of the world’s top gas exporters. For now, however, the country faces mounting economic pressures. The delays have cost Mozambique billions in potential revenue and deterred other foreign investors wary of instability. The delay underscores the need for the government to prioritize long-term security and governance reforms, said energy expert Felicity Morris.
In response to the crisis, Mozambique has received significant support from international partners, including the European Union and the United States, which have pledged assistance for counterterrorism and development efforts. However, experts caution that military solutions alone are insufficient. Addressing root causes such as poverty, unemployment, and marginalization in Cabo Delgado is crucial to achieving lasting peace. Despite the current challenges, TotalEnergies has reiterated its long-term commitment to the project. The company is working closely with the Mozambican government and security partners to assess conditions on the ground and explore ways to enhance safety measures.
For Mozambique, the stakes are high. The successful completion of the LNG project could mark a turning point for the nation’s economic trajectory, but persistent insecurity threatens to derail these ambitions. As global demand for natural gas continues to grow, Mozambique’s ability to capitalize on its vast reserves will depend on its capacity to ensure peace and stability in the region.
