TotalEnergies announced that its $20bn Mozambique LNG project will miss the 2029 production target due to unresolved force majeure and ongoing security concerns at the site.
The company had initially planned to lift force majeure and restart construction by late 2024, which would have enabled operations to begin by 2029.
A $4.7bn loan from the US Export-Import Bank (Exim) remains unapproved after construction was halted in 2021 following violent unrest in Cabo Delgado, with no disbursements made before the freeze.
TotalEnergies CEO Patrick Pouyanne stated in October that force majeure can only be lifted once financing is secured, but three export agencies have yet to reconfirm their loans after renegotiating restart costs.
A spokesperson for TotalEnergies emphasized that restoring peace and lifting force majeure are top priorities, responding to a Financial Times report about the extended timeline.
Exim revealed in November that it is still reassessing the loan package, alongside other unnamed export credit agencies.
The original financing was approved during Donald Trump’s presidency, but loan amendments have stalled under Joe Biden’s administration, which has restricted funding for overseas oil and gas projects.
Trump recently appointed three senior Exim officials, but the full leadership transition is expected to take several weeks.
Mozambique LNG, where TotalEnergies holds a 26.5% stake, was expected to establish the country as a major LNG exporter but was halted when an insurgency by Islamic State-linked militants swept through Cabo Delgado.
Security in the region has improved, with partner Mitsui announcing in December that preparations are underway to restart construction following contractor renegotiations.
Mozambican President Daniel Chapo, who took office last week, pledged to deploy soldiers to secure the project site. However, he faces ongoing protests over his disputed election victory, which has led to over 300 deaths since October 9.
African Energy Council