French energy giant TotalEnergies is preparing to resume work on its $20 billion liquefied natural gas (LNG) megaproject in northern Mozambique, four years after suspending operations due to a deadly insurgent attack in Palma.
The company has officially requested government approval to lift force majeure, signaling renewed confidence in the security situation following the deployment of over 4,000 Rwandan troops to the Cabo Delgado region. These troops, alongside Mozambican forces, have helped reclaim key towns and reduce attacks near the Afungi Peninsula, home to the LNG facilities.
The U.S. Export-Import Bank recently greenlit a $4.7 billion loan package—its largest ever—revitalizing the project’s financing. Other stakeholders, including Japan’s Mitsui & Co. and Mozambique’s state energy company ENH, remain committed, although some European backers have raised concerns over environmental and human rights issues.
Still, serious challenges remain. French prosecutors have launched a criminal investigation into TotalEnergies over its handling of the 2021 Palma attack, and allegations of human rights abuses involving Mozambican security forces persist.
If the project proceeds, analysts say Mozambique could see significant economic growth—up to 10% GDP expansion by 2028, according to the IMF. However, the global LNG market is expected to be oversupplied by the time production begins, likely no earlier than 2032, which could dampen the country’s long-term economic windfall.
