January 30, 2026
Finance

TotalEnergies Revives Mozambique LNG Project After Four-Year Hiatus

Resumption Marks Significant Step for Africa’s Largest Liquefied Natural Gas Development, Employing Thousands and Driving Local Contracts

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Summary

TotalEnergies SE has announced the full recommencement of operations at the Mozambique LNG project, a venture paused since 2021 due to regional conflict and associated disruptions. With construction activities now underway both offshore and onshore at the Afungi site, the consortium is targeting first liquefied natural gas deliveries by 2029. The project is positioned to generate thousands of direct jobs and promises substantial local economic participation. Concurrently, TotalEnergies secured a decade-long contract to provide renewable electricity to French industrial facilities, underscoring its expanding energy portfolio.

Key Points

TotalEnergies and Mozambique's government have fully resumed the Mozambique LNG project activities following a Force Majeure lift declared in 2025.
Construction has recommenced at the Afungi site with over 4,000 workers engaged, including more than 3,000 Mozambican employees.
The project is approximately 40% complete despite a multi-year halt, with first LNG deliveries targeted for 2029 and significant engineering and procurement progress achieved during the interruption.
The Mozambique LNG project is expected to create up to 7,000 direct jobs for Mozambicans and allocate over $4 billion to contracts with local companies, boosting the regional economy.

TotalEnergies SE (NYSE: TTE) and Mozambique’s President jointly declared the full reinstatement of development activities for the Mozambique LNG project on Thursday, signaling a pivotal restart following a protracted operational suspension. The consortium's prior injunction on the project, enacted as Force Majeure in 2021 amid escalating security concerns and militant violence, was formally lifted on November 7, 2025, reauthorizing work to resume without previous restrictions.

Activities recommenced with vigor at the Afungi site, encompassing both offshore and onshore components critical to the liquefied natural gas infrastructure. TotalEnergies confirmed the mobilization of over 4,000 personnel currently engaged in construction efforts, among which more than 3,000 are Mozambican nationals, evidencing a concerted emphasis on local workforce integration.

The Mozambique LNG project marks a substantial development in Africa’s energy sector and is currently reported to be approximately 40% complete. Despite the construction hiatus, preparatory engineering and the procurement of main equipment advanced substantially during the Force Majeure interval, minimizing delays to overall schedule. The consortium projects the commencement of LNG production by 2029, aiming to introduce the region's substantial natural gas reserves to global markets.

Employment and economic impact are noteworthy elements in the project’s staging. Direct job opportunities for Mozambicans are anticipated to peak at around 7,000 positions. Furthermore, contracts awarded to local enterprises have exceeded a valuation of $4 billion, demonstrating a significant investment in regional economic development. This level of local engagement is poised to reinforce Mozambique’s industrial base and support socioeconomic growth.

The suspension in 2021 was precipitated by militant activities, predominantly Islamist insurgent attacks within Cabo Delgado province, which compromised security and operational viability. Following the disruption and subsequent partner divestment, TotalEnergies augmented its equity in the project, reaffirming commitment to its completion and eventual operation. The company announced readiness to recommence work in late 2024, culminating in the formal restart announced this year.

Simultaneously, TotalEnergies secured a decade-spanning electricity supply agreement with the paper industry firm SWM. Effective January 2026, this contract necessitates the delivery of 800 gigawatt-hours (GWh) annually, primarily sourced from approximately 50 megawatts (MW) of TotalEnergies’ existing renewable energy assets in France. The power provision includes a constant delivery profile of renewable electricity, described as Clean Firm Power, to support three French SWM industrial plants. This arrangement illustrates TotalEnergies' diversification into renewable energy solutions alongside its fossil fuel endeavors.

TotalEnergies is slated to announce its fourth-quarter earnings on February 11, with its stock value displaying volatility in recent trading. Pre-market trading on Friday indicated a share price of $72.06, reflecting a 0.78% decline and approaching the 52-week peak of $73.75, highlighting investor attentiveness to energy sector dynamics and company performance.

Market analysts note increased volatility creating both risk and opportunity in energy equities, with strategic trading activities responding to rapid market fluctuations. TotalEnergies’ projects and contracts are central to current evaluations of the company’s operational strategy and financial prospects.

Risks
  • Regional security concerns remain relevant as the initial project halt was due to Islamist militant attacks in Cabo Delgado.
  • The project's timeline and delivery could face further disruptions if unforeseen operational or geopolitical challenges arise.
  • Market volatility may impact TotalEnergies' stock valuation and investor sentiment during project resumption and broader economic conditions.
Disclosure
Education only / not financial advice
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