TotalEnergies planned to restart its delayed liquefied natural gas (LNG) project by late 2024, targeting operations by 2029. Credit: Juozas Baltiejus/Shutterstock.

TotalEnergies has announced that the anticipated start of its $20bn (€19.22bn) Mozambique LNG project will be postponed beyond 2029.

The company cited ongoing security concerns and the necessity to conclude force majeure as the reasons for the delay.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

TotalEnergies had aimed to recommence construction on the delayed LNG project by the end of 2024, with the expectation of it becoming operational by 2029.

However, a $4.7bn loan from the US Export-Import Bank (EXIM) remains pending for reapproval following the suspension of construction in 2021 amid violent conflict in the Cabo Delgado region, close to the project site.

TotalEnergies CEO Patrick Pouyanne expressed to investors that lifting force majeure is contingent upon securing project finance.

He mentioned that three export agencies are yet to reaffirm their loans after TotalEnergies renegotiated new restart costs with contractors.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

A Total spokesperson said: “The priority is to restore peace and security in Cabo Delgado and the lifting of force majeure.”

EXIM is currently reassessing the modified loan package in conjunction with other unnamed export credit agencies.

The bank initially agreed to finance Mozambique LNG during President Donald Trump’s first term.

However, efforts to amend the loan and restart the stalled project faced delays under former president Joe Biden’s administration, which limited funding for overseas oil and gas projects.

With Donald Trump’s recent return to office, three key senior appointments to EXIM have been made, although a complete leadership transition may take several weeks.

Mozambique LNG, in which TotalEnergies holds a 26.5% operating stake, was expected to transform the southern African nation into a significant LNG producer before the project came to a standstill due to an insurgency.

Improved security has been reported in the area, with Mitsui, a partner company, indicating that final preparations to resume construction are in progress after renegotiations with contractors.

Mozambican President Daniel Chapo, who assumed office last week, has pledged to continue deploying soldiers to secure the project site.