TotalEnergies Relaunches Mozambique Gas Project After Five-Year Hiatus
French energy giant TotalEnergies has officially restarted its $20 billion Mozambique gas project, which was suspended in 2021 following a deadly jihadist attack. The project, located in the northern Cabo Delgado province, is expected to generate thousands of jobs and help make Mozambique one of the world’s biggest liquefied natural gas (LNG) exporters.
TotalEnergies chief executive Patrick Pouyanne announced the restart of the Mozambique LNG project at a ceremony attended by President Daniel Chapo. Pouyanne stated, “I am delighted to announce the full restart of the Mozambique LNG project… The force majeure is over.” The company had previously lifted the force majeure in October and is seeking $4.5 billion in compensation from the Mozambique government for cost overruns linked to the delay.
The project, which is reportedly the largest private investment in Africa’s energy infrastructure, has significant implications for the national economy. According to President Chapo’s office, the restart “presents a significant milestone for the national economy and reaffirms the confidence of international partners in Mozambique’s energy, institutional, and human potential.”
However, environmental groups have raised concerns about the project’s potential environmental impact, labeling it a “climate bomb” that would bring little benefit to the majority of Mozambicans, who live below the poverty line. The World Bank estimates that over 80% of the population lived on less than $3 per day in 2022.
The restart of the project comes despite ongoing security concerns in northern Mozambique, where jihadist insurgents have carried out regular attacks on civilians and troops. The insurgency has resulted in over 6,200 deaths since 2017, according to the NGO Acled. While the region has not experienced an attack on the scale of the 2021 incident, which killed an estimated 800 people, the security situation remains a concern.
The relaunch of the Mozambique LNG project marks a significant development in the country’s energy sector, with potential implications for the global energy market. As the project moves forward, it will be important to monitor its progress and address the concerns raised by environmental groups and local communities.
