The Mozambican government has stated that it will communicate its official stance on the revised budget for TotalEnergies’ $20 billion liquefied natural gas (LNG) project at a later date, following the French energy company’s confirmation that project costs have increased significantly.
According to Reuters, TotalEnergies recently informed partners and authorities that costs for the Mozambique LNG project, located in the northern Cabo Delgado province, had risen by about $4.5 billion due to inflation, security expenses, and delays caused by insurgent attacks in the region. The project, once considered Africa’s largest private investment, has faced multiple disruptions since its suspension in 2021.
Mozambique’s Minister of Mineral Resources and Energy, Carlos Zacarias, said the government is still reviewing the updated figures and timelines before issuing an official response. “We are in discussions with all stakeholders to ensure the project remains viable and aligned with national interests,” he told reporters in Maputo, as quoted by Bloomberg.
The LNG venture, led by TotalEnergies alongside partners including Japan’s Mitsui, Mozambique’s state-owned ENH, and India’s ONGC Videsh, is seen as a cornerstone for Mozambique’s economic transformation. Analysts say the government’s response will be critical in determining how quickly the project can return to full-scale production and begin contributing to the country’s export earnings.
