TotalEnergies Revives $20B Mozambique Gas Project Amid Ongoing Insurgency. Maputo, Mozambique — 2026-01-29 Lead Paragraph: Five years after a jihadist attack suspended operations, French energy giant TotalEnergies has relaunched its $20 billion gas project in northern Mozambique.
The project, a cornerstone of Mozambique’s energy infrastructure, is expected to contribute significantly to the nation’s economic growth.
However, it comes amidst ongoing conflict and criticism from environmentalists and local communities. TotalEnergies suspended its operations in 2021 following a jihadist attack in Cabo Delgado province, which resulted in a force majeure declaration.
The company is now seeking $4.
5 billion in cost overruns linked to the delay, according to official statements. Despite the delay, the project, which employs 4,000 people, 80 percent of whom are Mozambique nationals, is expected to generate thousands of jobs and significantly reduce cooking gas imports, according to independent observers.
The Cabo Delgado province has been addressing an insurgency since 2017, primarily led by the jihadist group Ahlu Sunna Wa Jama (ASWJ).
The group has been responsible for numerous attacks on civilians and security forces, exacerbating the humanitarian crisis in the region. ACLED estimates that more than 800 people were killed in the 2021 attack on the port town of Palma, just kilometers from the TotalEnergies site. Environmentalists have raised concerns about the project, labeling it a “climate bomb “and arguing that it will provide little benefit to Mozambicans, over 80 percent of whom live below the poverty line.
TotalEnergies is seeking a 10-year extension to its concession, more than doubling the length of the delay. It remains unclear whether the Mozambique government will approve the extension.
The restart of the gas project is significant for Mozambique, which has the potential to become one of the world’s top ten natural gas producers, according to regional officials.
However, the ongoing conflict and environmental concerns underscore the challenges ahead for the nation’s energy sector. Further details on the government’s decision regarding the concession extension are expected in the coming weeks.
The situation in northern Mozambique continues to develop, with the gas project’s future hanging in the balance.
*Additional reporting by ImNews | Sources consulted: 4*
