Energy

Mozambique LNG Exports Restart as TotalEnergies Reopens Cabo Delgado Operations Worth $5 Billion

TotalEnergies has restarted liquefied natural gas exports from its $20 billion Mozambique LNG project in Cabo Delgado, with annual export revenue projected at $5 billion as Japanese and European buyers secure long-term supply agreements.

By Zawadi MwangiAfrica5-minute read25 Apr 2026☆ Save ↗ Share ⎙ Print

TotalEnergies has restarted liquefied natural gas (LNG) exports from its $20 billion Mozambique LNG project in Cabo Delgado province, marking the resumption of one of Africa's most strategically important energy developments after a three-year suspension caused by an Islamist insurgency. The first cargo of approximately 150,000 cubic meters of LNG departed the Afungi LNG terminal on April 12, bound for Japan's JERA power utility, signaling the return of Mozambique to the ranks of the world's significant LNG exporters.

The restart of the Mozambique LNG project, which is operated by TotalEnergies (26.5 percent stake) in partnership with Mozambique's national hydrocarbon company ENH (15 percent), Japan's Mitsui (20 percent), India's ONGC Videsh (10 percent), Thailand's PTT (8.5 percent), and three additional minority partners, represents a turning point for Mozambique's economy. The project is expected to generate approximately $5 billion in annual export revenue at full production, more than doubling Mozambique's current GDP of approximately $16 billion and potentially transforming one of the world's poorest countries into a significant energy exporter.

The Mozambique LNG project, located on the Afungi peninsula in the Cabo Delgado province, was declared force majeure in April 2021 following a series of attacks by Islamist insurgents affiliated with Al-Shabaab (not to be confused with the Somali organization of the same name) that forced the evacuation of the construction site. The insurgency, which began in 2017, had by 2021 caused approximately 3,700 deaths and displaced over 800,000 people in Cabo Delgado, threatening the security of one of the largest private investments in African history.

The restart was made possible by a significant improvement in the security situation in Cabo Delgado, driven by a combination of Mozambican military operations, the deployment of a Southern African Development Community (SADC) standby force, and the engagement of Rwandan special forces. The SADC mission, which peaked at approximately 3,000 troops from South Africa, Tanzania, Botswana, Angola, and the DRC, has been credited with restoring security to the Afungi peninsula and surrounding areas, though sporadic attacks continue in more remote parts of the province.

TotalEnergies' CEO, Patrick Pouyanne, confirmed the restart during the company's first-quarter earnings call in Paris on April 23. "The security situation has improved sufficiently to allow us to resume operations at Afungi with confidence in the safety of our personnel," Pouyanne said. "We have invested $800 million in security infrastructure, including a 120-kilometer perimeter fence, a dedicated security force of 2,500 personnel, a surveillance system with drones and cameras, and an evacuation and medical facility. The safety of our people is our absolute priority."

The project's design capacity is 12.9 million tonnes of LNG per year from two processing trains, along with 3.4 million tonnes of natural gas liquids. TotalEnergies has indicated that the first train is expected to reach full production by September 2026, with the second train following by early 2027. The ramp-up will be gradual, with production expected to reach 8 million tonnes per year by the end of 2026 and full capacity by mid-2027.

LNG offtake has been secured through long-term sales and purchase agreements (SPAs) with Japanese and European buyers. JERA, Japan's largest power utility, has contracted for 2 million tonnes per year for 20 years. Tokyo Gas and Toho Gas have contracted for an additional 1 million tonnes per year. European buyers including ENI, Shell, and E.ON have secured approximately 4 million tonnes per year, reflecting Europe's shift away from Russian gas following the Ukraine conflict. Indian buyers including GAIL and Gujarat State Petroleum Corporation have contracted for approximately 3 million tonnes per year. The remaining capacity will be sold on the spot market.

Japan's interest in Mozambique LNG reflects its broader energy security strategy. Japan, the world's second-largest LNG importer, has been seeking to diversify its supply sources away from the Middle East and Australia. Mozambique's proximity to Asian markets gives it a shipping advantage of approximately 5 to 7 days compared to LNG from the US Gulf Coast, reducing freight costs and improving supply chain reliability.

The economic impact on Mozambique has been significant even before the restart. The Mozambican government has received approximately $2.8 billion in advance payments from the LNG project since 2019, which have been partially used to finance infrastructure development and social programs. At full production, the project is expected to generate $3 billion to $4 billion annually in government revenue through taxes, royalties, and ENH's profit share, representing a transformative fiscal windfall for a country with a per capita GDP of approximately $500.

However, the benefits of the LNG project have been unevenly distributed. Cabo Delgado remains one of the poorest provinces in Mozambique, with limited access to education, healthcare, and economic opportunities despite sitting atop one of Africa's largest gas reserves. The insurgency, which was partly fueled by grievances over economic marginalization and land dispossession, displaced hundreds of thousands of people who have yet to return to their homes. The resettlement of communities from the Afungi peninsula to make way for the LNG project has been controversial, with some displaced families reporting inadequate compensation and difficulty establishing livelihoods in relocation sites.

TotalEnergies has committed $500 million to community development programs in Cabo Delgado over the life of the project, including education facilities, healthcare centers, agricultural training programs, and small business development. The company has also established a $100 million local content fund to support the development of Mozambican businesses capable of supplying goods and services to the LNG project.

Environmental organizations have raised concerns about the project's carbon footprint. The Mozambique LNG project is estimated to produce approximately 50 million tonnes of CO2 equivalent annually across its lifecycle, including extraction, processing, liquefaction, and combustion. At a time when the International Energy Agency has warned that no new fossil fuel projects are compatible with limiting global warming to 1.5 degrees Celsius, the restart of a major LNG project in a developing country highlights the tension between climate imperatives and development needs.

For Mozambique, the restart of LNG exports offers a pathway out of poverty that few countries in its position have been offered. The question is whether the government can convert this extraordinary resource wealth into lasting development, or whether the pattern seen in many resource-rich developing countries -- where mineral wealth fuels corruption, conflict, and inequality rather than broad-based prosperity -- will repeat itself. The LNG is flowing. The test of governance begins now.