MOZAMBIQUE: Mozambique Clears Path for $20 B LNG Project

In mid‑July 2025, Mozambique’s Energy Minister announced that the government has successfully established the security and regulatory environment needed for TotalEnergies to restart its ambitious $20 billion LNG project at Afungi, which had been suspended since 2021 due to insurgent attacks linked to the Islamic State. Security in northern Cabo Delgado has significantly improved—with support from Mozambican forces and allied Rwandan troops—making it possible for project leaders to resume construction this summer. The restart follows high-level discussions between TotalEnergies’ CEO and President Chapo, signaling both political commitment and operational readiness from Maputo’s leadership.

The project, which includes two liquefaction trains with a combined capacity of over 13 million tonnes per annum, is designed to tap into abundant offshore gas fields and elevate Mozambique to a leading African LNG exporter. Financially, it has already attracted major backing, including nearly $5 billion from the U.S. Export-Import Bank, with further support expected from international credit agencies. Contractors have been reactivated and site preparation has resumed, as technical experts and financiers finalize the formal lifting of the force majeure status that had been in place since the 2021 attacks.

Yet the revival of the project also underscores the importance of Mozambique securing a strong social license to operate. Communities in Palma and surrounding areas were deeply affected by past violence, displacement, and allegations of human rights abuses linked to security forces. Ensuring local trust will require more than improved security—it demands transparent engagement, meaningful community benefits (such as job creation and improved services), and accountability for past mistakes. As TotalEnergies and its partners move forward, embedding these social safeguards will be critical not only for project stability but also for demonstrating that large‑scale LNG development can align with sustainable growth and huma rights protections.

SOURCE