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TotalEnergies Says Mozambique LNG Project Delays Add $4.5 Billion to Costs, Asks for 10-Year Extension to Production Agreement
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TotalEnergies Says Mozambique LNG Project Delays Add $4.5 Billion to Costs, Asks for 10-Year Extension to Production Agreement
Oct 27, 2025 4:19 AM

06:45 AM EDT, 10/27/2025 (MT Newswires) -- TotalEnergies (TTE) has reportedly informed Mozambique that costs for its liquefied natural gas project have increased by $4.5 billion during the four years it was suspended and asked for a 10-year extension to its production agreement, multiple media outlets reported Sunday, citing a letter from CEO Patrick Pouyanne to Mozambique President Daniel Chapo.

The project, which was previously estimated to cost $20 billion, was halted in 2021 after an Islamist militant attack, the reports said. TotalEnergies said Saturday that it and partners have agreed to lift force majeure. However, Mozambique's council of ministers must approve a revised budget and construction schedule before work can resume, the reports said.

In a Oct. 24 letter, Pouyanne said the revised budget "shall cover the incremental costs incurred by the project due to the force majeure," Reuters reported. The delay has pushed the expected first LNG shipment to the first half of 2029, from the previous target of July 2024. Pouyanne said the company is seeking a 10-year extension of the Golfinho-Atum development and production period to compensate "partially" the economic impact of the extended force majeure.

TotalEnergies' partners in the Mozambique LNG project include Mitsui, ENH, Bharat Petroleum, Oil India, ONGC Videsh, and Thailand's PTTEP.

TotalEnergies did not immediately respond to requests for comment from MT Newswires.

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