TotalEnergies to Resume $20 Billion Mozambique LNG Project as Security Improves

French energy major TotalEnergies has reached an agreement with the Mozambican government to resume construction of its $20 billion liquefied natural gas (LNG) project in the Cabo Delgado province, signaling a major step toward unlocking one of the world's largest untapped gas reserves.

The project, which was abruptly halted in 2021 following a series of deadly Islamist militant attacks on coastal towns, is set to restart as security conditions have markedly improved. The improvement follows a sustained regional military intervention, including troops from Rwanda and the Southern African Development Community, which has weakened insurgent capabilities.

Analysts note that the revival of the TotalEnergies-led venture—along with the planned resumption of a separate ExxonMobil consortium project—could reposition Mozambique as a future global LNG hub. The country holds over 100 trillion cubic feet of natural gas, discoveries that once prompted comparisons to gas-rich Qatar.

"This restart is a critical vote of confidence in Mozambique's stability and its energy future," said energy analyst Michael Finch. "The fiscal benefits are enormous, but the timeline for tangible local economic gains remains long."

Mozambican President Daniel Chapo has projected that the TotalEnergies project could generate up to $35 billion in state revenues over its lifespan. For a nation where an estimated 80% of the population lives in poverty, the development promises jobs, infrastructure, and a potential transformation of the national economy.

However, the path forward is not without challenges. Major LNG projects typically require years of construction before first exports, and the long-term security situation in Cabo Delgado remains fragile. Communities near the resource-rich coast have historically seen little benefit from mineral wealth, raising questions about equitable distribution.

Voices from the Ground:

"Finally, some hope for our youth. This project can bring skills and opportunities we desperately need," said Alima Juma, a community organizer in Pemba.

"We've heard these 'transformational' promises for a decade. Where is the development? Where are the schools and hospitals? I'll believe it when I see it in our daily lives," said Carlos Mbanze, a teacher in Mocímboa da Praia, his tone sharp with skepticism.

"This is a strategic win for energy security in Europe and beyond. Mozambique's gas is crucial for diversifying global supply," noted Elena Schmidt, a Brussels-based policy researcher.

The resumption of work is expected to begin in the coming months, with first LNG shipments likely still several years away.