By Emmanuel Nduka Obisue
Five years after operations were halted by a deadly jihadist assault, Mozambique has moved to restart a $20 billion liquefied natural gas (LNG) project in its conflict-hit northern region, marking a significant step in reviving one of Africa’s largest energy investments.
The project, operated by French energy giant TotalEnergies, was suspended in 2021 after militants attacked the port town of Palma in Cabo Delgado province, killing an estimated 800 people and forcing thousands to flee. Following the violence, the company declared force majeure and evacuated staff from the site.
TotalEnergies has since asked the Mozambican government to cover about $4.5 billion in cost overruns linked to the prolonged shutdown. Despite the setback, the LNG venture is expected to generate thousands of jobs and stimulate economic activity. It currently employs about 4,000 workers, with Mozambican nationals accounting for roughly 80 per cent of the workforce.
Regarded as the largest private investment in Africa’s energy infrastructure, the project forms part of broader gas developments in Cabo Delgado, where Italy’s ENI and US-based ExxonMobil also operate. Analysts say the scale of these investments could position Mozambique among the world’s top ten natural gas producers in the coming years.
However, the relaunch has drawn criticism from environmental groups, who describe the project as a “climate bomb” and argue it will deliver limited benefits to local communities. More than 80 per cent of Mozambicans live below the poverty line, raising concerns over whether revenues will translate into broad-based development.
TotalEnergies is also seeking a 10-year extension to its concession – more than double the length of the delay caused by the insurgency, though it remains unclear whether authorities in Maputo will approve the request.
Northern Mozambique has been plagued by a violent insurgency since late 2017, with attacks continuing despite regional and international military support. While no incident has matched the scale of the 2021 Palma assault, sporadic attacks on civilians and security forces persist.
According to conflict monitor ACLED, more than 6,200 people have been killed since the insurgency began. The violence has been attributed to a group locally known as “Al-Shabaab” unrelated to the Somali organisation, which seeks to impose strict Islamic law in Cabo Delgado, a historically neglected region vulnerable to radicalization.
