TotalEnergies restarts $20bn LNG project in Mozambique after 5-year freeze

Operations were paused indefinitely in 2021 due to escalating violence in the region.Published On 29 Jan 2026French energy giant TotalEnergies has restarted construction of a $20bn liquefied natural gas (LNG) project in Mozambique after being forced to pause operations indefinitely owing to escalating violence in the region.The company’s executive Patrick Pouyanne and Mozambique’s President Daniel Chapo jointly announced the official relaunch of the project on Thursday at a ceremony near the construction site in Afungi, located in the gas-rich Cabo Delgado province in Mozambique’s northeast.Recommended Stories list of 2 itemslist 1 of 2Video: Mozambique floods force thousands into displacement campslist 2 of 2Torrential rains displace thousands in Mozambique as floods wreak havocend of listThe project, considered one of the largest LNG projects on the continent, was suspended in 2021 as Mozambique, with the help of regional forces, battled to contain ISIL-linked fighting that has killed more than 6,400 people in the past eight years, according to the Armed Conflict Location and Event Data Project (ACLED).The project, which is designed to produce more than 13 million tonnes of LNG annually, is expected to come on stream in 2029, potentially generating as much as $35bn for government coffers over its lifetime from taxes, oil profits and other contributions, according to Chapo, cited by Reuters news agency.Pouyanne said in a statement issued by TotalEnergies that the project would bring “significant economic benefits” to the country, creating up to 7,000 direct jobs for Mozambicans during construction, with contracts awarded to local companies “expected to amount to more than USD 4 billion”.Security is deemed to have improved in Cabo Delgado, particularly with the deployment of Rwandan soldiers around the Afungi construction site. But the delays have cost significant sums of money, forcing the project’s parties to renegotiate terms.Environmental and human rights concernsEnvironmental and human rights groups have denounced the development, claiming it will bring little benefit to Mozambicans, more than 80 percent of whom lived below the poverty line of $3 per day in 2022, according to World Bank data.