- Potential $20 billion investment at stake
- Project halted since 2021 due to security concerns
- Improved security conditions reported by Pouyanne
Market reaction & context
TotalEnergies (TOTF.PA) seeks to resume construction of its Mozambique liquefied natural gas (LNG) project amid improving security conditions in the region. The project has been under force majeure since late 2021, affecting contracts and potential returns. Recovery in energy prices and demand for LNG also elevate the urgency for project completion as global markets tighten.
Detailed analysis
Pouyanne announced this intention during the World Gas Conference in Beijing, emphasizing the stability of the region has improved enough to justify the proposal. The Mozambique LNG project aims to develop natural gas fields in the Golfinho and Atum area, complemented by a liquefaction facility with a capacity of 13.12 million tons per year.
TotalEnergies holds a 26.5% stake in the project, with partners including Mitsui (20%) and Mozambique’s state-owned ENH (15%). The forced suspension of construction has kept the project in limbo, thereby impacting TotalEnergies’ projected revenues. The company’s intent to lift the force majeure signifies a strategic push to capitalize on rebounding LNG prices and potential increases in global demand.
Outlook / management quote
“The security situation has improved,” said Pouyanne, reiterating the company’s commitment to a timely restart of operations. “It remains to be seen whether the Mozambique government agrees, but we are optimistic.”
Conclusion
The successful lifting of the force majeure could reinvigorate TotalEnergies’ ambitions in Mozambique, restoring operational momentum after a prolonged halt. However, government approval will be crucial for any progress in the upcoming months.
Not investment advice. For informational purposes only.
References
1 TotalEnergies to Propose Lifting Force Majeure on Mozambique LNG Project. Reuters. Retrieved May 20, 2025.
2 WGC TotalEnergies CEO wants to lift the force majeure on Mozambique LNG project. World Energy News. Retrieved May 20, 2025.