French energy company TotalEnergies has announced the resumption of its $20 billion liquefied natural gas project in northern Mozambique, which was halted in 2021 due to escalating violence from an insurgency in the region. The project, considered one of Africa’s largest energy investments, is anticipated to significantly contribute to the economic growth of Mozambique, a nation with a population of approximately 34 million.
Project Resumption Announced
During an event in Afungi, the project site located in the gas-rich Cabo Delgado region, Patrick Pouyanné, CEO of TotalEnergies, declared a “full restart” of operations. He indicated that the first gas deliveries are expected by 2029, highlighting plans for a “massive ramp-up of activity in the coming months.” Pouyanné confirmed, “The force majeure is over,” marking a significant turning point for the project.
Operations at the site were frozen in April 2021 as violence from militant groups intensified, leading to the deaths of thousands and displacing more than 1 million people. In response to the crisis, the Mozambican government sought assistance from the Southern African Development Community (SADC) and Rwanda. While SADC forces withdrew in early 2024 after their mandate expired, Rwandan troops remain active in the region, where fighting has decreased but sporadic clashes continue.
Economic Impact and Job Creation
President Daniel Chapo, who was elected in 2024 on a platform focused on economic development and security enhancement, emphasized that the resumption of the gas project would help counter the perception that Cabo Delgado is solely associated with terrorism. “When you talk about Cabo Delgado, terrorism is the first thing that comes to mind,” Chapo stated, underscoring the need to demonstrate that positive developments are also taking place in the region.
Chapo described the restart of the TotalEnergies project as a “decisive step” in Mozambique’s strategy to harness its resources, stimulate economic growth, and create jobs. He anticipates that the venture will generate billions of dollars in revenue for the government, which has a minority stake in the project, alongside investors from India, Japan, and Thailand.
Pouyanné forecasted that the project would deliver “jobs and prosperity” to the area, with over 4,000 workers expected to be employed, 80% of whom will be Mozambican nationals. Young people from the region will receive training in various trades, including carpentry and electrical work, providing them with valuable skills for future employment.
Additionally, Pouyanné committed to contributing aid in the aftermath of devastating floods that recently affected Mozambique and neighboring countries. According to the World Health Organization, these floods resulted in the deaths of approximately 300 people earlier this month.
The resumption of the TotalEnergies project not only represents a significant investment in Mozambique’s future but also symbolizes a potential shift towards stability and growth in a region that has faced considerable challenges.
