French energy conglomerate TotalEnergies has clarified that the overall cost of its Mozambique Liquefied Natural Gas (LNG) project remains at $20.5 billion, despite widespread reports suggesting otherwise. During a recent investor engagement on Thursday, Chief Executive Officer Patrick Pouyanné directly addressed what he termed as misinterpretations surrounding the budget and scope of the long-delayed operation in Cabo Delgado province.
Pouyanné firmly reiterated that the additional $4.5 billion spent since 2021 was not a new budget overrun but rather part of the previously communicated cost structure. He noted: “I want to be very clear and strong on this point: the budget was around $15.5 billion previously. $4.5 billion is what we’ve spent in these past years. So the total is not $25 billion but $20.5 billion.”
The Mozambique LNG project—initially stalled in 2021 due to the security situation in the northern region, including conflict involving non-state armed groups—has been under force majeure for over four years. The lifting of that clause by TotalEnergies last week was a crucial step forward, yet the project’s recommencement still hinges on formal agreement from the Mozambican government concerning the updated budget parameters.
TotalEnergies’ clarification comes in the wake of renewed engagement with Maputo and regional stakeholders as it prepares to resume development. Pouyanné’s remarks are viewed as an attempt to reaffirm transparency, especially in the context of public-private partnerships and regional trust-building after years of disruption.
The original financial structure of the LNG venture was underpinned by a $14.9 billion senior debt financing agreement signed in 2020 with a consortium of global banks. At the time, TotalEnergies’ Chief Financial Officer, Jean-Pierre Sbraire, publicly confirmed that the full project was valued at $20 billion, with the firm responsible for the remaining $5 billion not covered by debt.
As it stands, the revised figure of $20.5 billion reflects expenditure incurred during the forced halt in operations, and does not imply a cost overrun as had been previously speculated by some media outlets.
This project holds significant implications not only for Mozambique but for the broader Southern African and continental energy landscape. Strategically located in East Africa, Mozambique possesses one of the continent’s most extensive offshore gas reserves, representing a crucial node in both regional energy security and Africa’s place in the evolving global energy transition.
TotalEnergies has been keen to reframe its approach within Mozambique through what it describes as a “responsible energy strategy”, but community and civil society voices continue to call for enhanced transparency, local content development, and robust environmental and human rights safeguards.
The role of African governments, particularly Mozambique’s, remains pivotal—not just as facilitators of international capital, but as sovereign actors ensuring that large-scale extractive projects translate into tangible socio-economic dividends. In that light, the LNG development presents an opportunity to advance infrastructure, skills development, and local business participation, but only if the governance and benefit-sharing mechanisms are equitably structured.
With the official project restart now contingent upon Mozambican government approval of the clarified budget, the coming weeks will be critical in determining whether this high-profile venture can finally transition from prolonged delay into actionable progress.
