Mozambique LNG Project Restart | TotalEnergies Boosts Confidence

TotalEnergies (TTE.PA) formally relaunched its 20 billion Mozambique LNG project Thursday after a five-year suspension, targeting first deliveries in 2029. The restart signals renewed confidence in the region’s security situation and could boost the French energy giant’s long-term natural gas production capacity.

Key Takeaways

TotalEnergies restarts 20 billion Mozambique LNG project after 5-year halt
First LNG deliveries targeted for 2029, CEO confirms timeline
Project budget increased to 20.5 billion from original estimates

Market reaction & context

The project restart comes as global LNG demand remains robust, with European buyers seeking alternatives to Russian energy supplies¹. TotalEnergies lifted the force majeure declaration that had suspended operations since 2021 due to militant violence in northern Mozambique².

The French energy major joins other international oil companies expanding LNG capacity, with ExxonMobil’s separate Rovuma LNG project in Mozambique also expected to begin construction within 12-18 months³. Combined, these projects could position Mozambique as a significant LNG exporter.

Detailed analysis

CEO Patrick Pouyanné said the company remains “on track to deliver LNG from its Mozambique project in 2029,” emphasizing that security conditions have improved sufficiently to resume operations⁴. The project’s budget has risen to 20.5 billion, up 4.5 billion from earlier estimates⁵.

The Mozambique LNG facility will process natural gas from the offshore Golfinho and Atum fields in the Rovuma Basin. Once operational, the project is expected to produce 13.12 million tons of LNG annually⁶.

Outlook & management quote

“There will now be a massive ramp up in work at the Mozambique LNG project,” Pouyanné said during the restart ceremony⁷.

The restart is expected to trigger orders for up to 17 new LNG carrier vessels to transport the future production⁸.

Mozambican President Daniel Chapo welcomed the development, saying construction represents a crucial step toward the country’s economic transformation through natural resource development⁹.

Conclusion

The Mozambique LNG restart marks a significant milestone for TotalEnergies’ growth strategy and Africa’s emerging role in global LNG markets. However, investors should monitor security developments and potential further cost escalations as the project progresses toward its 2029 target date.

The project’s success could establish Mozambique as a major LNG supplier and provide TotalEnergies with a substantial long-term revenue stream in the growing global gas market.

Not investment advice. For informational purposes only.