MAPUTO/PARIS – The TotalEnergies-led Mozambique LNG consortium has formally lifted the force majeure declaration on its US$20 billion liquefied natural gas project in northern Mozambique, clearing the way for a long-awaited restart of one of Africa’s largest energy ventures.
The French energy major informed President Daniel Chapo’s government of its decision on October 24, following a high-level agreement on how much of the US$4.5 billion in additional costs caused by the four-and-a-half-year suspension could be credited against future taxes.
TotalEnergies halted construction in March 2021 after Islamist insurgents linked to the Islamic State overran the coastal town of Palma, just a few kilometres from the Afungi LNG site in Cabo Delgado province. The attack triggered the evacuation of thousands of workers and the declaration of force majeure — a contractual clause invoked during extraordinary circumstances that prevent project execution.
In a letter to President Chapo, TotalEnergies CEO Patrick Pouyanné said the company was satisfied that the government’s latest security guarantees — including the continued presence of Rwandan troops under a new Status of Forces Agreement signed in August — provided a sufficiently stable environment for operations to resume.
“The Mozambique LNG Concessionaire assesses that the required security conditions are now in place to allow it to resume its activities,” Pouyanné wrote.
Under the revised schedule, first gas exports are now expected in the first half of 2029, with completion of both processing trains before the end of that year — a five-year delay from the original plan.
TotalEnergies has also asked the Mozambican government to extend its production license by 10 years to help offset the economic impact of the prolonged shutdown. The consortium includes Mitsui (Japan), ONGC Videsh (India), Bharat Petroleum, PTTEP (Thailand) and Mozambique’s state-owned ENH.
If fully revived, Mozambique LNG — centered on the Golfinho-Atum fields in Area 1 of the Rovuma Basin — could produce up to 13.1 million tonnes of LNG per year, transforming Mozambique into one of the world’s top gas exporters.
The lifting of force majeure is expected to unlock billions in financing and rekindle investor interest across Cabo Delgado, where security has gradually improved under a joint military campaign led by Rwandan and Southern African Development Community (SADC) forces.
Still, analysts caution that sporadic insurgent attacks continue in parts of the province, meaning that sustained peace remains vital for Mozambique’s gas-fuelled economic revival. – ZimLive
