TotalEnergies has informed stakeholders that the cost of its liquefied natural gas (LNG) project in Mozambique has increased by $4.5 billion, reflecting inflationary pressures, supply chain challenges, and enhanced security investments. The announcement was made following a project review reported by Bloomberg and Reuters.
The French energy major now estimates total spending for the project at roughly $24 billion, up from an earlier projection of around $19.5 billion. The Mozambique LNG venture, located in the Cabo Delgado province, has faced repeated delays since 2021 after insurgent attacks prompted the suspension of operations.
A company spokesperson said the revised budget accounts for upgraded infrastructure and strengthened on-site security measures. “The additional costs reflect our commitment to ensuring the long-term safety, efficiency, and sustainability of the project,” the spokesperson noted.
Industry analysts say the project remains central to Mozambique’s economic transformation, with potential annual export revenues exceeding $10 billion once fully operational. TotalEnergies is expected to restart full construction in 2025, pending continued stability in the region.
