TotalEnergies Bets on Dual Strategy: Mozambique LNG Revival and European EV Push
PARIS – TotalEnergies SE is making bold moves on two fronts, signaling its strategy to navigate the energy transition. The company has officially restarted its long-stalled $20 billion Mozambique liquefied natural gas (LNG) project, a move that could significantly boost its gas portfolio. Simultaneously, it is deepening its European electric vehicle (EV) infrastructure bet through a new investment platform.
The restart in Mozambique follows a prolonged force majeure period due to security concerns in the Cabo Delgado province. The project, one of Africa's largest single investments, is pivotal for global LNG supply and Mozambique's economic future. Analysts suggest its successful completion could reposition TotalEnergies as a leading LNG supplier to Europe and Asia.
In a separate strategic play, TotalEnergies has partnered with asset manager Tikehau Capital to launch a platform aimed at accelerating the rollout of EV charging networks in Belgium and the Netherlands. This follows a recent memorandum of understanding (MoU) with Kuwait Oil Company for joint exploration and technical cooperation, underscoring the firm's continued commitment to upstream oil and gas.
For investors, these developments arrive as TotalEnergies' stock (ENXTPA:TTE) trades around €62.56. The share price reflects a robust 143% return over five years, though shorter-term gains have moderated amid sector volatility. The market is now closely watching how the capital allocation between high-cash-flow LNG projects and growth-oriented low-carbon investments will balance.
"TotalEnergies is trying to have its cake and eat it too," said Claire Dubois, a senior energy analyst at Veritas Capital in London. "The Mozambique restart is a classic, capital-intensive fossil fuel play, while the EV charging network is a bet on a decarbonized future. The execution risk and vastly different return profiles of these ventures will challenge management's narrative."
Marcus Chen, a portfolio manager focused on sustainable infrastructure, offered a more optimistic view: "This isn't schizophrenia; it's pragmatism. The cash from LNG funds the energy transition. The EV charging move is smart—it's securing demand points for electrons, just as they once did for molecules. It's an integrated energy strategy for a messy, transitional world."
A more critical perspective came from Dr. Elara Vance, an environmental economist: "Let's be clear: restarting a mega-LNG project in 2024 is a climate disaster in the making, dressed up as 'strategic balance.' The EV charging is a drop in the ocean compared to the emissions locked in by Mozambique. This isn't a transition strategy; it's a delay tactic to squeeze every last euro from hydrocarbons while greenwashing the edges."
Robert Finch, a veteran oil & gas investor, shrugged off the criticism: "The market doesn't pay us for purity; it pays for returns and manageable risk. Mozambique LNG is a world-class asset. If they can build it safely and profitably, while throwing some capital at the 'future,' that's a win for shareholders. The stock's performance speaks for itself."
As details on project timelines, capital expenditure, and projected cash flows from these initiatives emerge, investors will gain a clearer picture of how TotalEnergies intends to reconcile its legacy operations with its stated ambition to be a broad-energy company for a net-zero world.