Mozambique: TotalEnergies gives the go-ahead to restart its gas mega-project

Patrick Pouyanné, Chairman of TotalEnergies, revealed on Thursday that almost 80% of the $14 billion needed to finance the Cabo Delgado gas mega-project was now secured. The announcement comes at a crucial time, as TotalEnergies prepares to meet Mozambique's new president following the general elections on 9 October.

Speaking at a meeting with investors, Patrick Pouyanné welcomed the "progress on the ground" in the fight against terrorism, a situation that had led TotalEnergies to suspend its activities in the region in 2021. He also stressed the importance of the strategic alliance between Mozambique and Rwanda, which ensures security in the project area, located on the Afungi Peninsula. There are elections in Mozambique, and a new president will take office. I plan to travel to Maputo at the end of the month to meet him and discuss the new authorities' plans for continuing this alliance with Rwanda," said Pouyanné.

The project, located in one of the richest natural gas zones in the world, had been suspended following terrorist attacks in the province of Cabo Delgado. However, the improvement in the security situation, largely due to the intervention of Rwanda, has now enabled TotalEnergies to relaunch the initiative.

Pouyanné explained that TotalEnergies has around $14 billion of structured financing for the Mozambique LNG project (Zone 1), inherited from the acquisition of Anadarko in 2019. "Around 70% to 80% of the financing has already been confirmed by financial partners. We are awaiting confirmation from three of them, mainly located in Western countries where positions on the financing of energy projects have evolved. But they have reiterated their commitment and we are waiting for their green light to relaunch the project", he added.

TotalEnergies' goal is to start producing liquefied natural gas (LNG) at Afungi by 2029, with operations resuming in 2024. This restart is crucial for Mozambique, a country that aspires to become a major player in the global LNG market by exploiting the vast reserves of the Rovuma Basin, located off the coast of Cabo Delgado.

Mozambique's outgoing president, Filipe Nyusi, said last May that the resumption of gas projects was essential for the country's economic development, given the "promising stability" in the region. Nyusi also criticised the fact that investors' financial decisions had been delayed by the terrorist situation. "This project is old and cannot fail for that reason. It is essential that we find solutions", he insisted.

As Mozambique prepares to turn a new political page, the resumption of investment in the gas sector and the commitment of international partners such as TotalEnergies will be crucial to the country's energy and economic future.