TotalEnergies has officially lifted force majeure on its $20 billion Mozambique LNG Area 1 project after a four-year hiatus due to security attacks in the Cabo Delgado region. The major is currently seeking government approval for an updated budget and schedule before construction can fully resume, with the first LNG cargo shipment targeted for 2029.
In particular, interruptions are impacting project economics. TotalEnergies reports additional costs of approximately $4.5 billion, bringing the total investment over the original $20 billion. The company also requested a 10-year extension of production privileges to account for development and production delays. Construction is currently approximately 40% complete and is currently operating in “containment mode” due to continuing safety concerns.
This restart will have a significant impact on the global LNG market. The restart of Mozambique’s largest LNG project could ease tight markets and support energy security, as high capital costs and logistical challenges strain supply. Analysts at the International Energy Agency say new LNG volumes from remote regions like Mozambique are essential to stabilize prices and meet rising global demand.
The country’s LNG sector is further boosted by parallel developments. ExxonMobil’s $24 billion Rovma LNG Phase 1 project recently reached a milestone in front-end engineering and design, while Eni’s $7.2 billion Coral Norte LNG project is scheduled to begin construction this month. Together, these projects reflect the momentum building in Mozambique’s LNG industry and highlight both the scale of investment and the country’s strategic importance in the global gas market.
However, the rising costs and execution risks of frontier LNG projects mean that offtake agreements, financing terms and contract structures need to account for these challenges.
TotalEnergies’ higher capital requirements and request for a concession extension highlight the premium associated with such developments. Investors and off-takers need to factor in security risks, extended schedules, and increased costs. How these factors are handled in contracts will shape both the financial viability of the project and the broader perception of the risks of investing in African LNG.
For Africa as a whole, the confluence of Mozambique projects strengthens the continent’s role as an emerging power in global LNG supply. The ability to anchor long-term extraction, develop export infrastructure and link to trade hubs will determine whether the country’s offshore gas potential translates into material exports and domestic value creation.
The Africa Energy Investment (IAE) Forum – Africa Energy Week, to be held in Paris next year will serve as the main platform to connect African energy markets with global investors.
Mozambique’s LNG revival is more than just a resumption of construction, it is a recalibration of how frontier LNG projects are built, financed and integrated into global markets. As TotalEnergies, ExxonMobil and Eni move forward, their progress will not only shape the quantity and timing of future LNG supplies, but also set a precedent for how Africa’s emerging gas exporters engage with global trade and investment frameworks.
IAE 2026 is a special forum aimed at connecting African energy markets with global investors and will serve as a key platform for deal-making in the lead-up to Africa Energy Week. Scheduled for April 22-23, 2026 in Paris, the event will offer participants two days of in-depth interaction with industry experts, project developers, investors and policy makers. For more information, please visit www.invest-africa-energy.com. To become a sponsor or register as a representative, please contact sales@energycapitalpower.com.
