Mozambique: Total Energies delays LNG project

France’s Total energies has further postponed its $20 billion liquefied natural gas (LNG) project in Mozambique, citing ongoing security concerns.

The project, located in Mozambique’s volatile Cabo Delgado province, has been suspended since 2021 after an insurgency targeted the region.

Attacks in a nearby town left dozens of civilians dead, prompting TotalEnergies to declare force majeure and evacuate all staff from the site.

The company initially aimed to resume operations by the end of 2024, but recent violence following October’s contested presidential election has further delayed these plans.

This jeopardizes the company’s target of commencing production by 2029.

Daniel Chapo, representing the ruling Frelimo party, assumed office last week after months of opposition protests over his disputed election victory.

Civil society groups report that more than 300 people were killed during the unrest.

TotalEnergies said that restoring peace and security in Cabo Delgado remains the top priority before lifting the force majeure.

The company emphasized the need for public services and normalcy to return for the project to restart.

When approached for, Total energies did not immediately respond.

The company has also faced financial pressures, reporting $1.69 billion in impairment charges related to the U.S. offshore market and a 17% loss in value.

Reuters/Patience Ameh