FRENCH energy giant TotalEnergies has lifted force majeure on its $20 billion liquefied natural gas project in Mozambique, signalling a potential economic transformation for the southern African region after a four-year suspension caused by Islamist militant attacks.
The project, which represents one of Africa’s largest energy investments, is now forecast to come online in 2029 and is expected to generate substantial revenues for Mozambique and create economic opportunities across the Southern African Development Community (SADC) region.
TotalEnergies notified the Mozambican government on Friday that force majeure had been lifted, though full resumption awaits government approval of an updated budget and schedule. The company said Mozambique’s council of ministers must approve an addendum to the development plan before operations fully restart.
The 13 million metric-ton-per-year facility promises to position Mozambique as a major player in global energy markets, with nearly 90% of future output already contracted to international buyers, including China’s CNOOC, France’s EDF, and British major Shell. A portion of production is reserved for Mozambique’s state energy company ENH, ensuring domestic benefit from the resource.
Security Costs Add Billions
The project’s price tag has swelled by at least $4 billion due to security expenses and the extended halt, according to Indian shareholder Bharat Petroleum. Negotiations between shareholders and the Mozambican government continue over how to distribute these additional costs.
The resumption follows a multinational military intervention by SADC member states, supported by Rwanda, to restore peace and security in Mozambique’s gas-rich Cabo Delgado province, where Islamist insurgents had disrupted operations and displaced hundreds of thousands of civilians.
Major offshore gas discoveries attracted significant international investment to Mozambique, with Italy’s ENI and U.S. major ExxonMobil also holding stakes in the country’s energy sector. The project’s restart will test whether Mozambique can maintain the political stability and security infrastructure necessary to exploit its vast natural gas reserves.
TotalEnergies, the project operator and leading shareholder, said the 40% complete facility will proceed in “containment mode,” with workers accessing the site only by air or sea for security reasons.
The successful development could serve as a catalyst for broader economic growth across southern Africa, creating jobs, generating government revenues, and establishing critical energy infrastructure for the region.
