By Kwame Ndlovu, African Business Correspondent
Five years after a brutal jihadist assault forced operations to a halt, French energy giant TotalEnergies has announced the relaunch of its $20 billion liquefied natural gas (LNG) project in northern Mozambique.
The company had declared force majeure in 2021 following the deadly attack in Cabo Delgado province that left nearly 800 people dead. Now, TotalEnergies is seeking $4.5 billion in compensation from the Mozambican government to cover cost overruns linked to the prolonged delay.
Despite the challenges, the project is already a major employer, with 4,000 workers—80 percent of them Mozambican nationals—on site. Analysts say the development, alongside similar ventures by Italy’s ENI and America’s ExxonMobil, could propel Mozambique into the ranks of the world’s top ten natural gas producers.
Yet, the relaunch has sparked controversy. Environmental groups have branded the project a “climate bomb,” warning that its benefits will bypass ordinary Mozambicans, more than 80 percent of whom live below the poverty line. TotalEnergies has also requested a 10-year extension to its concession, though Maputo’s approval remains uncertain.
Security Shadows
Northern Mozambique continues to grapple with a jihadist insurgency that has plagued the region since 2017. While attacks have not matched the scale of the Palma assault in 2021—when insurgents stormed the port town near the LNG site, displacing thousands—the violence persists.
Conflict tracker ACLED estimates that more than 6,200 people have been killed since the insurgency began. Locals refer to the militant group as “Al-Shabaab,” though it bears no formal ties to the Somali organization of the same name. The insurgents seek to impose Sharia law in Cabo Delgado, a marginalized region that has become fertile ground for radical ideology.
As TotalEnergies resumes operations, Mozambique faces a delicate balance: harnessing its vast natural gas reserves for economic growth while navigating the ongoing threat of insurgent violence and the global debate over fossil fuels.
