Oct 28, 2025 (MarketLine via COMTEX) --
The approval will allow TotalEnergies to cover additional expenses incurred during the site's closure since 2021 due to security issues.
French oil company TotalEnergies is reportedly seeking approval from the Mozambican Government for a $4.5bn (ae3.86bn) increase in the costs of its liquefied natural gas (LNG) project.A
The LNG project construction has been delayed since 2021 due to security issues.A
TotalEnergies requires this approval to cover additional expenses incurred during the site's closure, reported Bloomberg, citingAa letter from Total's CEO, Patrick Pouyanne, to Mozambique President Daniel Chapo.A
This letter also revealed that TotalEnergies and its partners have decided to lift the force majeure status, which was declared following a significant attack by militants.A
The force majeure had led to the freezing of the $20bn (1.28tn meticais) LNG project, which is potentially significant for Mozambique's economy.A
Despite the insurgent attacks, Mozambique LNG has made progress in other areas including the reapproval of US funding and mobilisation of contractors.A
TotalEnergies said in the letter that the first LNG cargo from the initial production line is expected by the first half of 2029, delayed from the original target of July 2024.A
The second production line's first cargo is anticipated by the end of 2029.A
Additionally, TotalEnergies has requested a ten-year extension for the project's development and production period.A
It has also proposed changes to how the state oil company, Empresa Nacional de Hidrocarbonetos, will reimburse development costs.A
In July this year, Bloomberg reported that TotalEnergiesaEUR(TM) $20bn LNG project in Mozambique is gearing up to restart.A
The same month, the Mozambique Government outlined certain conditions for the resumption of the LNG project.A
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