Mozambique is on the brink of a major economic boost as two vital energy projects gain momentum.
TotalEnergies is moving forward with its $20 billion liquefied natural gas (LNG) project, while the World Bank has committed to supporting a $5 billion hydropower dam project.
After years of delays, Mozambique’s government is preparing to restart the LNG development led by TotalEnergies and secure World Bank financing for the region’s largest hydropower project in five decades.
Last week, Mozambique’s energy minister confirmed that the necessary conditions are in place to resume the TotalEnergies LNG project in the Cabo Delgado region, which has faced instability.
The project, which started in 2010 following the discovery of a vast offshore natural gas field, received final investment approval in 2019 but was paused in 2021 due to violent attacks by Islamist militants near the site.
This forced TotalEnergies to suspend work citing safety concerns. President Daniel Chapo acknowledged the ongoing security challenges, saying, “We have the small problem of jihad, terrorism.”
In a previous interview with Bloomberg in Spain, he said the region is safer than it was four years ago, though it is still not “heaven,” and expressed optimism about restarting the project.
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Chapo also shared that talks with TotalEnergies CEO Patrick Pouyanné are progressing well.
“I was with Mr. Pouyanné two weeks ago, and things are going well,” he said. “In August, we will close our talks” on when to resume the project.
With improved security, TotalEnergies plans to restart construction of the LNG project later this summer.
Beyond LNG, Mozambique aims to expand sustainable energy, according to a separate Bloomberg report.
The World Bank plans to back the $5 billion Mphanda Nkuwa hydroelectric dam on the Zambezi River and a related $1.4 billion power transmission initiative.
The dam will have a capacity of 1,500 megawatts and is expected to be operational by 2031.
The goal is to provide electricity to 300 million people across sub-Saharan Africa by 2030, significantly increasing access in a region where over 80% of the 680 million people worldwide without electricity live.
Mozambique’s president said, “We want to be the hub of energy in our region, the Southern African Development Community.”
The Mphanda Nkuwa project is a partnership involving Electricité de France SA, TotalEnergies SE, and Sumitomo Corp.
The Mozambican government, along with its company Hidroeléctrica de Cahora Bassa, will retain ownership stakes.
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Image Credit: MSN
