TotalEnergies' $20bn liquefied natural gas (LNG) project in northern Mozambique is taking steps towards resumption, with companies involved beginning preliminary site preparations, Bloomberg has reported.
The move comes four years after the project was halted in 2021 after an increase in militant attacks in the area linked to the Islamic State.
In early July 2025, the French oil company sent out a notice to proceed with site preparation to its contractors to recommence work.
Portuguese company Mota-Engil, in partnership with Belgian construction company Besix Group, had secured a $365m contract in 2020 to construct marine facilities for the LNG project.
Discussions have reportedly begun between contractors and subcontractors about returning to the site, signalling a concerted effort to move the project forward.
The Mozambique LNG project, located in the Cabo Delgado province, was initiated following the 2010 discovery of an extensive natural gas reserve off Mozambique's northern coast. It culminated in a final investment decision of $20bn in 2019.
The strategy for the estimated 65 trillion cubic feet of recoverable natural gas encompasses a two-train liquefaction facility, with the potential to expand its capacity to as much as 43 million tonnes per annum (mtpa).
Mozambican President Daniel Chapo has emphasised the need for collective security measures by the government and private entities to facilitate the project's restart.
In March 2025, the US Export-Import Bank sanctioned a $5bn (€4.61bn) loan to support the Mozambique LNG project.
In the same month, the Mozambican Commission on Human Rights (CNDH) confirmed the initiation of a criminal investigation, following reports from the media in 2024 regarding potential human rights violations by Mozambique’s Defence and Security Forces in the Afungi Peninsula, Cabo Delgado province, during the summer of 2021.
Mozambique LNG, with a 26.5% stake held by TotalEnergies, requested that Mozambican officials initiate a formal inquiry in November 2024 to determine the veracity of these claims.
