Mozambique LNG Project Resumes in Cabo Delgado After Four-Year Hiatus

Daniel Chapo
Mozambican President Daniel Chapo described the restart of the project as a historic moment, not only for the country but also for the continent and global energy markets. Photo: Daniel Chapo

After years of uncertainty, anticipation has finally given way to action. Mozambique’s flagship liquefied natural gas (LNG) project in Cabo Delgado was officially resumed on Thursday, marking a significant milestone for the country’s energy sector and its broader economic recovery.

The Mozambique LNG project, located in the Afungi peninsula of Palma district and developed in Area 1 of the Rovuma Basin, is led by French oil major TotalEnergies. The resumption was announced during a ceremony attended by government officials, project partners and local stakeholders, signalling the end of a suspension that had lasted since April 2021.

Valued at around US$20 billion, the project was halted following a surge in armed attacks in parts of Cabo Delgado, which prompted TotalEnergies to declare force majeure amid a deteriorating security situation. The pause cast a long shadow over one of Africa’s most ambitious energy developments, widely seen as a cornerstone of Mozambique’s long-term economic prospects.

Speaking at the ceremony, Mozambican President Daniel Chapo described the restart as a historic moment, not only for the country but also for the continent and global energy markets.

“Today is a day of celebration for Mozambique, for Africa and for the world,” Chapo said. “This historic moment represents far more than the resumption of works that will bring this project to life. It symbolises the victory, resilience, courage and determination of the Mozambican people in the face of adversity.”

He recalled that the suspension of activities in May 2021 was the result of severe security challenges in the region, stressing that the project’s revival reflects improved stability and renewed confidence in Cabo Delgado.

TotalEnergies chief executive Patrick Pouyanné echoed this sentiment, expressing satisfaction at witnessing the full restart of the LNG project. He underlined that the lifting of force majeure was made possible by tangible progress achieved by the Mozambican government, with the support of international partners.

“The period of force majeure is over,” Pouyanné said, adding that all engineering work and the procurement of major equipment have already been completed. “Now is the time to build the project here in Afungi.”

According to Pouyanné, approximately 4,000 workers are currently on site, with Mozambicans accounting for about 80 per cent of the workforce. He noted that much of the equipment has already been installed and expressed optimism that Afungi would soon develop into a fully-fledged industrial hub.

“We expect to see a new city emerging here in Afungi,” he said.

The TotalEnergies chief also announced the mobilisation of the project’s first vessel, the Olympic Challenger, which is already carrying out technical studies for the installation of deep-water infrastructure essential to the LNG development. He said activity would intensify in the coming months, with security remaining the top priority.

The gas fields feeding the project, Golfinho and Atum, are located in Area 1 of the Rovuma Basin and were first approved in 2006. The project was initially developed by US-based Anadarko Petroleum before TotalEnergies took over as operator in 2020.

Today, TotalEnergies holds a 26.5 per cent stake in the Mozambique LNG consortium. Mozambique’s state-owned oil company, ENH, owns 15 per cent, alongside Japan’s Mitsui & Co with 20 per cent. Other partners include ENH Rovuma Área Um (15 per cent), India’s ONGC Videsh (10 per cent), Beas Rovuma Energy Mozambique (10 per cent), BPRL Ventures Mozambique (10 per cent), and Thailand’s PTTEP Mozambique Área 1, which holds 8.5 per cent.

The resumption of Mozambique LNG is widely regarded as a turning point for Cabo Delgado, a province rich in natural resources but long plagued by conflict and underdevelopment. For the government, investors and local communities alike, the project’s revival rekindles hopes of economic growth, job creation and lasting stability in northern Mozambique.

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