Mozambique's energy development promised to transform the region, but the recent obstacles encountered by TotalEnergies raise questions. Between persistent insecurity and financial issues, the initial schedule seems increasingly compromised.
In 2021, a terrorist attack froze one of Africa's largest liquefied natural gas (LNG) projects. Today, despite colossal investments, the recovery remains a mirage. Why is this project taking so long?
TotalEnergies: an ambition hampered by insecurity in Cabo Delgado
The TotalEnergies LNG project, valued at 19.21 billion euros, was initially expected to be operational before 2029. However, chronic insecurity in Cabo Delgado province, northern Mozambique, has pushed back this deadline.. In March 2021, violent attacks by an Islamic State-linked group devastated the region, forcing the French energy group to evacuate its staff and declare force majeure.
According to TotalEnergies’ statements, the priority remains the restoration of peace and security in this regionessential to guarantee a return of workers and a resumption of work. However, these conditions still seem far away.
In addition to security challenges, financial blockages are also slowing down the project. The American Export-Import Bank (EXIM) approved a loan of 4.3 billion euros under the Donald Trump administration to finance the project. However, these commitments remain on hold under President Joe Biden, who is imposing tough restrictions on overseas fossil projects. To see if this can change with the return of Donald Trump to the White House.
The political situation in Mozambique further aggravates the uncertainties. The disputed election of Daniel Chapo, the country's new president, was accompanied by post-election violence.
2029: still too optimistic a date?
Cabo Delgado is a key region for the energy industry, home to immense natural gas reserves with the potential to transform Mozambique's economy. TotalEnergies holds a 26.5% stake in this strategic project, aimed at supplying Europe and Asia with LNG. However, insecurity, coupled with protests from the local population, is hampering not only the work, but also the resumption of normal life.
At the same time, Mozambique benefits from military assistance from its neighbors to stabilize the region. Despite these efforts, the resurgence of violence limits the ability of investors to progress.
TotalEnergies had initially planned to lift force majeure by the end of 2024. Security concerns, financial hurdles and political tensions have forced the group to reassess its priorities.
For the inhabitants of Cabo Delgado, this situation once again illustrates the difficulty of reconciling economic development and regional stability. In the meantime, the project remains at a standstill, and 2029 could only be another uncertain milestone.
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