(Ecofin Agency) - • TotalEnergies aims to resume its $20 billion Mozambique LNG project by mid-2025
• Project has been suspended since 2021 due to insecurity in Cabo Delgado
• Restart could boost GDP, attract investment, and strengthen infrastructure

TotalEnergies and its partners plan to restart their Mozambique LNG project, dormant for nearly four years due to security concerns, by summer 2025. The proposed revitalization of this $20 billion project would stimulate the local economy, strengthen industrial infrastructure, and attract new investments, amidst Mozambique's burgeoning gas sector.

For the past several months, TotalEnergies and its partners have been working towards resuming the Mozambique LNG project, which has been on hold for nearly four years due to security concerns. This January, another delay was suggested.

Patrick Pouyanné, CEO of the French multinational TotalEnergies, announced on Tuesday, May 20, that the group hopes to relaunch the Mozambique LNG project by next summer (between June and August 2025). The announcement was made on the sidelines of the World Gas Conference in Beijing.

“Security situation has improved [in Cabo Delgado],” noted the executive during the event. This, according to him, could pave the way for lifting the force majeure declared on the project in 2021.

The announcement followed a series of armed attacks in the region compromising operation security. Since then, the project has stayed suspended. The $20 billion project includes the development of offshore Golfinho and Atum fields, as well as the construction of a liquefaction plant with an annual capacity of 13.1 million tons.

Against the backdrop of Mozambique’s burgeoning gas sector, the Italian company Eni recently received approval from the authorities for its Coral Norte project development plan. This project involves a floating gas liquefaction unit. Since November 2022, the country has become an exporter of LNG, thanks to the Coral Sul venture, also operated by Eni.

Meanwhile, Mozambican authorities have been taking initiatives to maximize the economic benefits of gas. The United States has released nearly $5 billion to support the Mozambique LNG project.

The project restart, if materialized, would boost the local economy, strengthen industrial infrastructure, and attract new investments. According to the African Development Bank (AfDB), “Mozambique’s real GDP is expected to grow by an average of 5.2% between 2024 and 2025, driven by the extractive sector, particularly gas production.”