Mozambique LNG Project Set for Summer Restart, Saipem Confident Despite Past Delays

MILAN, Italy – Italy’s Saipem, a leading energy contractor, expressed strong confidence today that the $20-billion Mozambique Liquefied Natural Gas (LNG) project, spearheaded by TotalEnergies, will restart by the end of the summer.

This marks a crucial step forward for a project that has been under force majeure since 2021 due to insurgent attacks in Mozambique’s northern Cabo Delgado province.

Saipem’s CEO, Alessandro Puliti, stated that the restart will involve a “progression of activities” taking place over the summer, with the lifting of force majeure being a key step. This aligns with TotalEnergies CEO Patrick Pouyanne’s earlier expectation for the project to resume development “this summer”.

A Project Plagued by Insecurity and Delays

The Mozambique LNG project, one of Africa’s largest foreign direct investments, aims to develop the Golfinho and Atum natural gas fields in the Offshore Area 1 concession and construct a two-train liquefaction plant. Saipem’s contract for the project is valued at approximately 3 billion euros ($3.5 billion).

The project was initially halted in 2021 following attacks by the Islamic State-affiliated jihadist group known as al-Shabaab in the Cabo Delgado region. This suspension led to significant delays and raised concerns about the security and human rights situation in the province. TotalEnergies had previously stated that the project was expected to launch operations around 2029 or 2030.

Puliti downplayed recent media reports suggesting that the project site would only be accessible to workers by sea for security reasons, clarifying that much of the equipment is transported by sea for logistical, rather than security, purposes.

Addressing Human Rights and Security Concerns

The restart comes after extensive efforts by TotalEnergies to address security and human rights issues in the region. In February 2025, TotalEnergies mandated Jean-Christophe Rufin, a humanitarian and human rights expert, to conduct an independent assessment of the humanitarian situation in Cabo Delgado before a decision on restarting operations was finalised.

IV ZEAL VITAMIN

TotalEnergies CEO Patrick Pouyanne had indicated in April 2025 that the site was secure and ready for construction.

The project’s partners include Mozambique’s ENH, Japan’s Mitsui & Co., Thailand’s PTTEP, and Indian firms ONGC Videsh, Bharat Petroleum, and Oil India Ltd.

Saipem’s Broader Strategic Moves

In related news, Saipem and its Norwegian rival Subsea7 confirmed their plans to merge, aiming to create a leading global player in offshore energy services.

The merger, expected to be completed in the second half of 2026, still requires regulatory approvals, which Puliti anticipates will take around 12 months.

Saipem also reported a strong financial performance for the second quarter, with a 39% year-on-year rise in core earnings to 413 million euros.

While new contracts acquired in the period dropped compared to the previous year, the company maintained its full-year order intake expectations of around 12 billion euros.

The anticipated restart of the Mozambique LNG project signifies a renewed push to tap into Mozambique’s vast natural gas reserves, potentially bringing significant economic benefits to the country, while also highlighting the ongoing complexities of operating large-scale energy projects in conflict-affected regions.