TotalEnergies has again delayed the restart of its $20-billion LNG export project in Mozambique due to ongoing political instability and security concerns, the French energy giant told the Financial Times. The project, which has been under force majeure since 2021, was initially halted following violent attacks by Islamist militants near the site.
The facility, located near the town of Palma in Cabo Delgado province, has faced repeated threats from militants linked to the Islamic State. In 2021, a militant raid on Palma left dozens dead and prompted TotalEnergies to suspend work on what was Africa’s largest foreign investment at the time.
Since then, the company has been waiting for key conditions to be met before restarting the project. The timeline for first LNG production has already been pushed from 2027 to 2029. However, this new deadline is now in jeopardy after TotalEnergies failed to resume work by the end of 2024, as originally planned.
The company confirmed to the Financial Times that the delay was partly due to the contested presidential election in Mozambique and the ongoing violence in the region. The October election was marred by accusations of fraud, with opposition groups claiming the vote was rigged. Daniel Chapo of the Frelimo party, which has ruled Mozambique for nearly 50 years, won the election, but defeated candidate Venâncio Mondlane has rejected the results and called for strikes and protests.
TotalEnergies said that these political and security issues have made it impossible to restart the project. The company emphasized that it needs a stable environment with essential public services in place before proceeding. “The priority is to restore peace and security in Cabo Delgado and lift the force majeure,” a spokesperson for TotalEnergies stated.
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