Advertisement
Mozambique's cabinet has yet to take a decision on the revised budget and schedule for the USD 20 billion liquefied natural gas (LNG) project led by TotalEnergies. The project, suspended since 2021 following militant attacks in Cabo Delgado province, has seen its estimated cost rise by about USD 4.5 billion. TotalEnergies and its consortium partners have requested a 10-year extension of the development and production period to offset delays. Government officials said the LNG sector remains a national priority, but no date has been set for formal approval.
Mozambique's government is still reviewing the revised budget and timeline for the large-scale liquefied natural gas (LNG) project being developed by TotalEnergies and its consortium partners. A spokesperson confirmed after the recent cabinet meeting that the government has not yet taken a position on the updated proposal and will issue its view once the assessment is complete. Advertisement
TotalEnergies, the French energy company leading the project, informed Mozambique's president that costs have risen by around USD 4.5 billion over the four years the project has been suspended. The LNG development was originally estimated at about USD 20 billion, making it one of the largest energy investments in sub-Saharan Africa.
The project was halted in 2021 after an Islamist militant attack in Cabo Delgado province forced the company to declare force majeure and withdraw staff from the site. Although security in the region has improved since then, the long suspension has resulted in cost escalations and logistical setbacks.
To recover from the delays, TotalEnergies and its partners are seeking an extension of the development and production period by 10 years. The request forms part of the revised budget plan now under cabinet review. According to reports, if the government approves the updated terms, the consortium will resume full construction at the Afungi LNG site, where partial works have already been completed.
The government spokesperson said that restarting major gas projects is a priority for Mozambique's economic growth and energy ambitions, but no specific date has been shared for when the cabinet will make a final decision. The review process will weigh cost implications, project feasibility, and the country's security and infrastructure readiness before approval is granted.
TotalEnergies has continued to engage with both the government and local stakeholders to ensure that community resettlement and security measures are in place before resuming full operations. The project is expected to significantly boost Mozambique's LNG export capacity and generate revenue once completed.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
