The Government of Mozambique has postponed delivering an official stance on the revised financial and operational framework presented by TotalEnergies for its large-scale liquefied natural gas (LNG) project in Cabo Delgado. A spokesperson for the cabinet confirmed on Tuesday that while the matter was considered during the latest ministerial session, no definitive position has yet been made public. The government is expected to communicate its response in due course, although no date has been set for when this is likely to occur.
The TotalEnergies-led Mozambique LNG project, located in the troubled northern province of Cabo Delgado, has faced substantial setbacks since 2021 when Islamist militant violence led to a suspension of operations. This interruption has triggered a substantial revision of the project’s financial outlook and implementation schedule. On Friday, representatives from the French energy major met with President Filipe Nyusi and disclosed that costs had increased by an estimated US$4.5 billion over the four-year hiatus.
The initial estimated cost of the project was approximately US$20 billion, making it one of the largest energy infrastructure investments on the African continent. According to information shared during the presidential briefing, the consortium—comprising TotalEnergies and its partners—now seeks cabinet approval for an extension of the development and production phase by an additional ten years. This adjustment is considered essential for mitigating the financial impact of the operational pause and restoring project feasibility.
Should the revised terms be endorsed, construction is expected to resume on what is anticipated to be a transformative venture for Mozambique’s energy sector and broader economy. The spokesperson for the government reiterated the administration’s commitment to advancing the country’s gas sector but emphasised the need for careful assessment of the proposed modifications.
Mozambique’s LNG sector holds significant geostrategic and economic potential. The Rovuma Basin, where the TotalEnergies-led project is located, contains some of the largest natural gas discoveries globally in recent decades. The area has attracted multi-billion-dollar investments from international energy companies including Eni (Italy), ExxonMobil (United States), and the project’s primary operator, TotalEnergies (France).
Despite the vast promise, the region remains deeply affected by the aftermath of the 2021 insurgency, which displaced hundreds of thousands and stalled multiple developmental initiatives. Although a combination of regional military interventions and internal security operations has led to a degree of stabilisation, the security environment remains a central concern for all stakeholders involved.
The fiscal implications of the revised proposal are also significant in light of Mozambique’s wider economic outlook. The country has been pursuing debt sustainability reforms under the auspices of the International Monetary Fund and other development partners. As such, major public-private infrastructure ventures such as this LNG project are seen as critical levers for future revenue generation, export diversification, and industrial development.
However, analysts caution that the resumption of the project under the proposed cost increases and extended timelines must be managed with transparency, inclusive stakeholder engagement, and clear delineation of benefits for affected local populations. There is growing emphasis among policy and civil society actors across Africa on ensuring that extractive megaprojects contribute not only to national growth metrics but also to regional development and social equity.
Mozambique’s natural gas reserves—among the largest on the continent—have been viewed by successive governments as key to unlocking sustainable development. Nonetheless, the challenges posed by regional instability, infrastructure bottlenecks, and the volatile global energy market underscore the complexity of translating natural resource wealth into lasting socio-economic transformation.
TotalEnergies has publicly reiterated its commitment to a phased, responsible re-entry into Mozambique. The company has also maintained its focus on community engagement, security coordination, and long-term capacity building. Nevertheless, the future of the project now hinges on the cabinet’s decision—one that could shape the trajectory of Mozambique’s energy landscape for decades to come.
At a time when global energy transitions are reshaping investment patterns and political narratives, African hydrocarbon producers face both opportunity and pressure. There is growing continental consensus around the idea that Africa must be allowed to chart its own energy future, informed by local priorities, environmental realities, and economic imperatives. For Mozambique, the LNG project represents both a test case and a turning point—one that requires sober judgment, regional solidarity, and a developmental lens rooted in justice and resilience.
The cabinet’s forthcoming decision will be watched closely not only by investors and international observers but also by Mozambicans whose livelihoods, environment, and futures are tied to the evolving energy frontier.
