Mozambique LNG Project to Restart as Force Majeure Lifts
The $20 billion Mozambique LNG project, one of Africa’s largest energy investments, is set to resume construction after TotalEnergies ended its force majeure declaration. Paused since 2021 due to insurgent threats in Cabo Delgado, the project’s revival signals renewed confidence in Mozambique’s gas sector and global LNG supply chains.
Why Was the Mozambique LNG Project Halted?
The project, located in the Rovuma Basin’s Area 1 block, holds 65 trillion cubic feet of natural gas—enough to make Mozambique a top LNG exporter. However, in April 2021, TotalEnergies suspended operations after Islamist insurgent attacks near Palma threatened worker safety. The pause delayed infrastructure like the onshore LNG plant, impacting Mozambique’s economic growth plans.
Security Improvements Enable Restart
Key factors behind the restart:
– Joint military efforts (Mozambique, Rwanda, SADC) reclaimed insurgent-held zones.
– A 25km security perimeter was established around the Afungi site.
– TotalEnergies pledged community engagement to address local grievances.
CEO Patrick Pouyanné stressed that ongoing security protocols will ensure safe operations.
Economic and Global LNG Impact
- Mozambique’s Economy: Could double GDP with $50B+ in LNG exports over 25 years.
- Global Energy Markets: Vital for Europe/Asia seeking alternatives to Russian gas.
- Investor Confidence: May attract more energy projects to East Africa.
Risks and Challenges
- Intermittent insurgent activity in Cabo Delgado.
- Local tensions over land rights and resource benefits.
- Long-term LNG demand uncertainty amid energy transitions.
What’s Next?
- Phased restart through mid-2024, focusing on LNG plant and export infrastructure.
- Government and partners (e.g., Mitsui, ONGC Videsh) aim to ensure stability.
