TotalEnergies has agreed to lift the force majeure declaration that froze its Mozambique LNG project mid-construction in 2021 with work expected to resume as soon as the country’s council of ministers approves a revised budget and schedule.
TotalEnergies plans to restart Mozambique LNG with a budget pegged at $20.5 billion, CEO Patrick Pouyanné said during the company’s 3Q 2025 earnings call on 30 October, adding that media reports earlier had incorrectly interpreted his letter to Mozambique's president which requested approval for a $4.5-billion cost increase related to the project's 4-year pause.
"I want to be very clear and strong on this point: The budget was about $15.5 billion previously, (and) $4.5 billion is what we've spent in these past years (during the shutdown). So, the total is not $25 billion (as had been reported in the media), but (around) $20.5 billion.”
Subsea Wells and Pipeline Works Halted
TotalEnergies froze construction on the project following a militant attack and mass killings in April 2021 on the town of Palma near the construction site.
The freeze affected not only the LNG plant onshore but also derailed the start of drilling and completion of 20 subsea wells to be equipped with gathering systems, subsea trees, and manifolds to produce gas from the deepwater Golfinho and Atum fields in Offshore Area 1 of the Rovuma Basin. Once gathered, gas would be delivered to shore via a 40-km undersea pipeline (Fig. 1).
TechnipFMC, in consortium with Van Oord, had won the $1-billion engineering, procurement, construction, and installation (EPCI) contract for the offshore subsea part of the development in 2019. TechnipFMC is responsible for deepwater works, while Van Oord handles the shallow-water aspects of the project.
Allseas is a major subcontractor responsible for offshore installation activities, with Worley providing engineering and consulting services for the onshore and subsea facilities.
Drilling and subsea infrastructure development had yet to commence, however, when TotalEnergies declared force majeure in April 2021.
Workers 'Contained,' but Attacks Continue
More than 4 years on, construction of the facility is said to be nearly 40% complete—largely preliminary construction. The plant’s two initial trains with a combined capacity of 13 mtpa will be delivered only after the project reboots. Work will resume in containment mode with workers only allowed in by air or sea, the French major said.
Insurgent attacks have not abated despite Mozambique signing a new security pact with Rwanda, whose military helped secure the construction area. Concern is growing that the restart of megaprojects by Western oil companies could be contributing to renewed tensions.
Just days after TotalEnergies announced the lifting of force majeure, the Financial Times reported that ExxonMobil—which is building a rival plant—was forced to cancel a media briefing at its Houston headquarters with Mozambique’s President Chapo and senior company executives because of escalating security concerns in Cabo Delgado, the region where its $30-billion Rovuma LNG project is located.
The briefing was to focus on just-signed memorandums of understanding to establish a training center and support local energy projects in the East African country.
Exxon targets 2026 for a final investment decision on its Mozambique Rovuma Venture—an 18-mtpa onshore LNG facility destined to become Africa’s largest—located north of the TotalEnergies project on Afungi and drawing its feed stock from the Rovuma Basin’s offshore Area 4.
East Africa Suits Japanese Demand
As operator, TotalEnergies holds a 26.5% stake in the Mozambique LNG project, with 30% of the offtake destined for India based on the combined shares held by partners Bharat Petroleum (10%), Oil India (10%), and ONGC Videsh (10%). Japan's Mitsui holds 20%, ENH (15%), and Thailand's PTTEP (8.5%).
For Asian consumers, LNG from Mozambique, whether it comes from TotalEnergies’ project or ExxonMobil (in partnership with Eni), is important given the country’s geographic position, far from chokepoints like the Straits of Hormuz, where geopolitical disputes can hobble deliveries from Middle East producers such as Qatar and the UAE.
For Japan, the world’s second-largest largest LNG importer after China, Mitsui’s 20% offtake from TotalEnergies’ project is likely to be sold to Japanese utilities such as JERA and Tokyo Gas, as well as to the Taiwanese oil company CPC, Nikkei Asia reported in August. The Japanese government has also supported the project with loans and investments through government agencies.
Given the 4-year delay created by force majeure, however, Japan has sought alternatives. For example, the Nigerian National Petroleum Company (NNPC) shipped its first-ever LNG cargo to Japan in June 2024, NNPC said in a press release at the time.
Japan is widely reported to be eyeing suppliers in Malaysia while also strengthening supply chains with Australia's LNG industry and with the US, where Tokyo Gas and JERA have invested in Haynesville shale acreage as well as assets further downstream along the Gulf Coast.
