TotalEnergies Doubles Down on African LNG Ambitions Amid Mozambique Restart and Namibia Expansion

PARIS – French energy giant TotalEnergies (ENXTPA:TTE) is making bold moves to cement its African liquefied natural gas (LNG) portfolio, reigniting a flagship project in Mozambique and expanding its foothold in a promising new basin off Namibia. The strategic push underscores the company's bet on long-cycle gas projects despite geopolitical and financial uncertainties.

The company confirmed it has resumed full operations at its $20 billion Mozambique LNG project, lifting a force majeure declared in 2021 following insurgent attacks near the site. The restart is expected to generate thousands of local jobs and provide a significant boost to Mozambique's economy, which is banking on becoming a major global LNG exporter. Simultaneously, in Namibia, TotalEnergies has assumed operatorship of key offshore licenses in the Orange Basin, including the potentially prolific Mopane discoveries, strengthening its position in what analysts call the world's next major offshore hotspot.

These developments come as international energy firms continue to prioritize large-scale, resource-rich projects to secure future production. For TotalEnergies, Africa represents a critical growth engine. "The restart in Mozambique and the consolidation in Namibia are not just operational milestones; they are strategic declarations," said energy analyst Michael Thorne of Veritas Insights. "TotalEnergies is positioning itself to be a dominant player in Atlantic Basin LNG supply for decades, but the capital intensity and regional risks are substantial."

Investors are now watching for final investment decisions (FID) on the next phases, particularly for the Venus discovery in Namibia. The pace of development, contract awards, and ultimate project timelines will heavily influence the company's capital expenditure and its long-term production mix toward gas.

Market Voices: A Mixed Reaction

We gathered reactions from the investment community:

• Sarah Chen, Portfolio Manager, Global Resources Fund: "This is a textbook long-term value play. Mozambique LNG has first-mover advantage in the region, and Namibia's potential is enormous. The market is undervaluing the optionality here."
• David Forsythe, Senior Analyst, Greenfield Capital: "The valuation metrics for these mega-projects are becoming stretched. We're seeing cost inflation across the sector, and African fiscal regimes are prone to change. The growth narrative is compelling, but the risk-adjusted returns need closer examination."
• Anya Petrova, Energy Economist & Commentator: "It's staggering. While communities grapple with the direct impacts and the world demands a faster energy transition, TotalEnergies is doubling down on fossil fuel monoliths in volatile regions. This isn't strategic growth—it's a high-stakes gamble with questionable social license and climate logic."
• Kwame Nkosi, Director, Africa Energy Advisory: "The local economic benefits, if managed well, could be transformative for Mozambique. The key is ensuring national content and revenue transparency. For Namibia, this accelerates its journey to becoming a significant producer."

The success of these African ventures is pivotal for TotalEnergies' ambition to grow its LNG portfolio by 40% by 2030. As the projects progress, they will inevitably face scrutiny not only on financial metrics but also on their environmental and social governance footprint.

Reporting by Energy Desk.