Mozambique has confirmed that the necessary conditions are now in place for French energy giant TotalEnergies (TTEF.PA) to resume work on its $20 billion liquefied natural gas (LNG) project in the country.
President Daniel Chapo announced on Thursday that the government is ready for the company to lift the force majeure that has been in effect since 2021, following an Islamist militant attack that forced the suspension of operations.
The massive project, capable of producing 13 million metric tons of LNG annually, is now expected to start production in 2029, about five years later than initially planned.
“Conditions are met for the lifting of force majeure, and we await the pronouncement of the concession holder shortly,” Chapo said during a ceremony where Italian energy company Eni (ENI.MI) and its partners approved a new gas project investment in Mozambique.
When approached for comment, TotalEnergies declined to respond to Chapo’s remarks.
For TotalEnergies, the world’s second-largest publicly listed LNG producer, this Mozambique project represents a major opportunity to close the gap with its key competitor Shell (SHEL.L), especially as global demand for natural gas continues to rise and Western nations look for alternatives to Russian supplies.
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