TotalEnergies, the French energy giant, has further delayed its ambitious $20 billion liquefied natural gas (LNG) project in northern Mozambique due to persistent security concerns. The project, which was halted in 2021 following a violent insurgency in the Cabo Delgado region, faced a setback after the recent disputed presidential election.  

The company, in a statement to the Financial Times, cited the need for a return to normalcy and the restoration of public services in the region as prerequisites for resuming construction. The delay casts a shadow over the project’s anticipated 2029 production timeline.

The insurgency, which has wreaked havoc on the region, has had a devastating impact on the local population, including displacement, destruction of infrastructure, and a significant impact on the agricultural sector. The recent presidential election, marred by allegations of fraud and violence, has further exacerbated the instability in the region.  

The $20 billion LNG project, once operational, was expected to significantly boost Mozambique’s economy and transform the country into a major energy exporter. However, the ongoing security challenges and the resulting delays pose a significant threat to these ambitious goals.  

TotalEnergies has emphasized the importance of restoring peace and stability in Cabo Delgado before resuming construction. The company is closely monitoring the situation and will reassess the project timeline accordingly.

The delay in the LNG project highlights the complex interplay between security, political stability, and economic development in resource-rich regions. The success of the project hinges on a comprehensive solution that addresses the root causes of the insurgency and ensures the safety and well-being of the local population.