TotalEnergies Lifts Force Majeure; $4.5B Cost Hike

TotalEnergies and its partners have lifted force majeure on the $20 billion Mozambique LNG project and notified the Mozambican presidency, signaling a formal restart of work halted by Islamist militant attacks in 2021. The consortium says costs rose by about $4.5 billion during the four-year suspension and is seeking a 10-year extension to the development and production period; Mozambique’s council of ministers must approve an addendum with an updated budget and schedule before construction resumes. The project is roughly 40% complete and aims to produce about 13 million tonnes of LNG annually, with shareholders reporting contracts covering nearly 90% of future output. First LNG is now expected in the first half of 2029, and remaining on-site work will be carried out in “containment mode” with workers allowed only by air or sea for security reasons. Negotiations continue over how to allocate the additional costs and their tax treatment between the consortium and Mozambique. Security concerns persist as insurgent attacks and large civilian displacement in northern Mozambique raise questions about the stability needed to fully exploit the gas resources.