Mozambique LNG is moving closer to revival, but its relaunch remains contingent on rearranging finance, government approval and complex negotiations.

 

According to the Global LNG Database® (1), on 29 October 2025, operator TotalEnergies announced the lifting of force majeure declared in 2021, paving the way for restart.
Yet the project’s revised $20 billion budget - up from $15-16 billion - and request for a 10-year extension to the development period must be approved by Mozambique’s council of ministers.

 

Financing adjustments add further complexity. In 2020, Mozambique LNG secured $15.4 billion from a consortium of lenders, including Export Credit Agencies. But UKEF and Dutch ECA have since withdrawn. To fill the gap, partners will provide additional equity, replacing about 10% of external financing.

 

While this demonstrates commitment, equity is costlier than debt and could weigh on project economics. Such changes will also require formal approval from both the government and partners, adding another layer of negotiation.

 

Mozambique LNG’s relaunch is progressing, but higher costs, financing reshuffles, and government approvals mean revival will take time. With a 2030 horizon, the project’s future depends on sustained alignment between governments, lenders, and partners.

 

(1) Global LNG Database® - Perfect information. Powerful decisions. The Global Energy Database® is your trusted source for global LNG import/export projects. Don’t miss out - explore the platform at: here.

 

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