The Mozambique Government has reportedly created the necessary conditions for the resumption of TotalEnergies' $20bn liquefied natural gas (LNG) project, reported Reuters, citing sources.

The project, which was halted in 2021 due to an Islamic State-linked insurgency, is now poised for a restart. TotalEnergies is aiming to resume development by mid-2025.

TotalEnergies CEO Patrick Pouyanne recently met with Mozambique President Daniel Chapo to discuss the project's revival.

Security interventions have reduced insurgent attacks around the project's Afungi site in northern Mozambique, although the threat has not been eliminated.

Minister of Mineral Resources and Energy Estevao Pale was quoted as saying at an event in Inhambane province on 14 Jul: “It was a meeting with the perspective of restarting activities.”

Located in northern Mozambique, the project is taking steps towards resumption, with companies involved beginning preliminary site preparations.

This move comes four years after the project's suspension due to an increase in militant attacks in the area linked to the Islamic State.

Earlier this month, TotalEnergies sent out a notice to proceed with site preparation to its contractors to restart work.

The US Export-Import Bank has also sanctioned a $5bn (€4.61bn) loan in March to support the Mozambique LNG project.

The decision to sanction the loan follows a previous commitment of $4.7bn during US President Donald Trump's tenure.

The project had been re-evaluated after construction was suspended in 2021 amidst security concerns and violent disruptions near the project site in the Cabo Delgado province of Mozambique.  

Furthermore, the project is also awaiting reapproval of additional loans from the UK and Dutch export credit agencies.