French energy company TotalEnergies has officially resumed its $20 billion liquefied natural gas project in northern Mozambique, a significant move following a two-year halt due to escalating violence from insurgent groups. The project, located in the resource-rich Cabo Delgado province, is anticipated to play a crucial role in stimulating economic growth in a nation grappling with severe challenges, including the displacement of over 1 million people due to conflict.
Resumption of Operations and Economic Outlook
On March 7, 2024, during an event in Afungi attended by Mozambique’s President Daniel Chapo, Patrick Pouyanné, CEO of TotalEnergies, declared the “full restart” of operations. The company expects first gas deliveries by 2029 and outlined plans for a significant increase in activity in the coming months. “The force majeure is over,” Pouyanné stated, indicating a renewed commitment to the project.
The project was initially suspended in April 2021 as violence surged across the Cabo Delgado region, leading to the deaths of thousands and creating a humanitarian crisis. In response, Mozambique sought military assistance from regional forces, including troops from the Southern African Development Community (SADC) and Rwanda. While SADC forces completed their mandate and withdrew in 2024, Rwandan troops remain deployed, contributing to a decrease in violence, although sporadic clashes continue.
Impact on Local Communities and Future Prospects
President Chapo, who took office in 2024, highlighted the project’s potential to transform perceptions of Cabo Delgado, stating, “When you talk about Cabo Delgado, terrorism is the first thing that comes to mind. It was necessary to show the world… that the work has actually resumed.” He emphasized that the project represents a decisive step towards economic recovery, job creation, and the sustainable development of Mozambique’s resources.
TotalEnergies’ plans include the creation of over 4,000 jobs, with approximately 80% of these positions designated for Mozambican nationals. The company aims to provide training opportunities in various trades, such as carpentry and electrical work, to empower local youth. Pouyanné also pledged support for humanitarian efforts in the wake of recent devastating floods that impacted Mozambique and neighboring countries, resulting in approximately 300 fatalities, according to the World Health Organization.
As TotalEnergies resumes its operations, the anticipated project not only signifies a return to economic activity but also aims to foster long-term peace and stability in the region. With significant investments from partners in India, Japan, and Thailand, the project’s revival is poised to generate substantial revenue for the Mozambican government, promising a brighter future for its citizens.
