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TotalEnergies officially resumed construction on its massive liquefied natural gas (LNG) project in northern Mozambique on Thursday, ending a five-year hiatus.
The $20 billion venture—the largest private energy investment in African history—was halted in 2021 following a brutal terrorist attack in the town of Palma that claimed hundreds of lives.
TotalEnergies CEO Patrick Pouyanne joined Mozambican President Daniel Chapo to announce the full restart, noting that over 4,000 workers are already on-site.
With production slated to begin in 2029, the project aims to transform Mozambique into one of the world’s top 10 gas exporters and a cornerstone of global energy security.
The government estimates the project could generate $35 billion in state revenue over its lifespan, potentially boosting national economic growth to 10% annually.
However, the restart arrives amid complex legal and financial negotiations.
TotalEnergies is seeking $4.5 billion in compensation for cost overruns caused by the delay and is pushing for a 10-year concession extension.
Meanwhile, the company faces significant legal pressure in France, including a manslaughter investigation and a complaint regarding “complicity in war crimes” filed by NGOs alleging the firm failed to protect subcontractors during the 2021 siege adequately.
While the region has seen a relative stabilisation in security, environmental groups continue to oppose the development, labelling it a “climate bomb” that risks bypassing the local population.
Despite the withdrawal of British and Dutch financial backing last year, the consortium has secured additional equity from existing partners.
As construction ramps up toward a peak of 17,000 workers, the world will be watching to see if the project can truly deliver on its promise of prosperity in a province still haunted by insurgency.
