TotalEnergies has signed a $10 million memorandum of understanding (MoU) with Mozambique’s Agency for the Integrated Development of the North (ADIN) to fund development projects in Cabo Delgado, the gas-rich province plagued by years of insurgency.
Local sources confirmed the signing on Tuesday, noting that the funding underscores the French energy giant’s readiness to resume work on the long-delayed Mozambique LNG project.
Cabo Delgado, home to the $20 billion project, has been at the heart of an Islamic State-linked insurgency since 2017.
The violence has displaced over one million people and claimed 349 lives in 2024 alone, according to the Africa Center for Strategic Studies.
Following a 2021 militant attack in Palma, TotalEnergies declared force majeure and evacuated staff from its Afungi site.
The suspension also stalled other multibillion-dollar projects in the region, including ExxonMobil’s LNG venture.
Eni, meanwhile, recently secured authorization to develop the $7.2 billion Coral Norte LNG project, targeting first production by Q2 2028.
Speaking at the signing, Maxime Rabilloud, TotalEnergies’ representative in Mozambique, stressed that the company’s priority is to restore community stability before restarting operations.
“We want to contribute, through ADIN, to the government’s efforts to stabilize the lives and well-being of communities. The signing of this memorandum with ADIN marks our desire to strengthen and expand ongoing work through a more global strategy,” Rabilloud said.
He added that the French major wants the communities of Palma and Mocímboa da Praia to continue benefiting from opportunities linked to the US-backed LNG project.
A signal of return of TotalEnergies?
Despite repeated assurances from the Mozambican government, TotalEnergies has taken a cautious stance on resuming operations.
President Daniel Chapo said in July that discussions with the company were progressing well and hinted at a possible restart by August.
“I was with Mr Pouyanné two weeks ago and things are going well. In August, we will close our talks,” Chapo said.
TotalEnergies’ CEO Patrick Pouyanné has also previously signaled a possible restart, noting that subcontractors had been instructed to prepare for a return to the Afungi Peninsula.
The company holds a 26.5% stake in the Area 1 consortium, alongside Mozambique’s state oil company, Japanese trading house Mitsui (20%), and other partners, with LNG output primarily targeted at Asian markets.
Development first, gas later
ADIN said the new financing will support basic infrastructure development including road paving, environmental preservation, and initiatives to boost local businesses.
It also includes provisions for addressing “climate shocks and adverse factors” while promoting resilience, humanitarian aid, and social cohesion in affected communities.
This social intervention programme is widely viewed as a precursor to TotalEnergies’ eventual return to Mozambique’s LNG sector.
