TotalEnergies' Mozambique LNG Up for Delay Beyond 2029

TotalEnergies' $20 billion Mozambique LNG project will not be operational by 2029 as hoped, the French oil major said on Wednesday, citing the need to end force majeure and ensure security at the project site.

TotalEnergies had previously said that it hoped to lift force majeure and restart construction on the long-delayed liquefied natural gas project by the end of 2024, which would allow it to come online by 2029.

However, a $4.7 billion loan from the U.S. Export-Import Bank (EXIM) has yet to be re-approved, after construction on the project was frozen in 2021 due to violent unrest in the northern Cabo Delgado region near the project site — before any disbursements were made.

Total CEO Patrick Pouyanne told investors in October that force majeure could only be lifted with the project finance fully secured, and that three export agencies had not yet reconfirmed their loans after Total negotiated new restart costs with contractors.

"The priority is to restore peace and security in Cabo Delgado and the lifting of force majeure," a Total spokesperson said on Wednesday following a report by the Financial Times on the slipped timeline.

EXIM told Reuters in November it was still re-evaluating the amended loan