The development of the Cabo Delgado gas project in Mozambique remains stalled, despite operators’ assurances that work will resume soon. The $20 billion venture, led by France’s TotalEnergies and U.S.-based ExxonMobil, aims to convert gas into liquefied natural gas (LNG) on the Afungi peninsula. Construction was halted in 2021 after insurgents captured the nearby town of Palma.
TotalEnergies has announced plans to restart operations only after the site is secured and transformed into a fortress with restricted access. The company intends to transport all personnel and supplies by air or sea, citing security concerns. ExxonMobil says it will commence operations roughly one year after TotalEnergies resumes work. The current delay is attributed to ongoing negotiations between TotalEnergies and the Mozambican government, which is led by the ruling Frelimo party.
Before the 2021 occupation of Palma, gas contractors and staff were based in the town, which had experienced significant economic growth. TotalEnergies’ decision to relocate staff and contractors to a secure facility within the project site has raised concerns among local businesses and residents, who fear exclusion from the project and loss of income and job opportunities. In response, Maxime Rabiloud, TotalEnergies’ Managing Director in Mozambique, met with local business owners from Palma district on September 6. He assured them that the company does not intend to reduce purchases from local businesses, citing existing contracts with agricultural producers and suppliers. Additionally, TotalEnergies has signed an agreement with the Northern Integrated Development Agency (ADIN) to provide $10 million for development initiatives in Palma and Mocimboa da Praia districts.
Local businesses in Palma announced a strike starting September 10 to protest their perceived exclusion from the project. Despite the lack of an official restart, about 2,000 workers are already on site, preparing the fortress and LNG base. The project’s future remains uncertain as the Mozambican government and TotalEnergies continue to negotiate the terms of the restart. The outcome of these negotiations will have significant implications for the local economy and the future of the Cabo Delgado gas project.
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