Mozambican President Daniel Chapo has underscored the critical need for a collaborative security effort involving his government and private sector partners to facilitate the resumption of TotalEnergies’ $20 billion liquefied natural gas (LNG) project. The vital venture in the northern Cabo Delgado province has been stalled since 2021 due to a persistent militant insurgency, and even with heightened security, risks are expected to persist.
The expansive gas reserves off northeast Mozambique, discovered 15 years ago, are central to the future economic prosperity of the southern African nation, which ranks among the world’s poorest. TotalEnergies halted construction, evacuated personnel, and declared force majeure in 2021 following an escalation in attacks by Islamic State-linked militants.
“Regarding security, it’s relatively stable compared to this past four years, but continuity of this stability doesn’t depend only on the government of the republic but on all partners in that area,” President Chapo stated in an interview with Bloomberg in Seville on Tuesday. He pragmatically added, “If we’re waiting for Cabo Delgado to be a heaven, we won’t lift force majeure.”
The TotalEnergies facility, which is projected to require another four years for completion once work resumes, is designed to liquefy and export Mozambique’s substantial gas reserves. To date, only one floating plant, operated by Eni SpA, has commenced operations. A final investment decision on a third planned venture, ExxonMobil’s $27 billion Rovuma LNG project, is anticipated next year.
Mozambique previously sought regional assistance to secure Cabo Delgado after its own attempts to quell the violence using mercenaries proved unsuccessful. Rwandan troops, deployed months after the attacks that prompted TotalEnergies’ evacuation, have provided an effective response. The European Council in November provided additional funding to the Rwanda Defence Force to aid in counter-insurgency efforts, though the precise terms of their long-term deployment remain fluid.
“How long will depend a lot on security on the ground — it’s difficult to say tomorrow or later,” Chapo remarked, emphasizing the broader nature of the challenge. “Security doesn’t depend fully on Rwanda, Total or Mozambique, but on how terrorism is playing out on the ground.”
The repeated delays in restarting the project have necessitated that TotalEnergies renew financing agreements with various lenders. A significant milestone was achieved in March when the US Export-Import Bank approved a $4.7 billion loan, representing the largest funding component and a crucial step towards a restart.
While on-site operations remain suspended, TotalEnergies has continued engineering work, with Chief Executive Officer Patrick Pouyanne indicating last month that LNG production could potentially commence by 2029.
The Mozambican government is keen to see work resume “as quickly as possible” and is actively exploring various security options, though none are guaranteed to be foolproof, according to President Chapo.
“We’ve got faith that TotalEnergies will be able to lift the force majeure” once adequate security is in place, he affirmed. However, he refrained from providing a specific timeline, noting, “I don’t have a date because that will depend on Total.”
