Mozambique and French oil giant TotalEnergies agreed to restart a $20 billion natural gas project, thanks to improving security in the southern African nation.
Construction was halted in 2021 following a spate of Islamist attacks along Mozambique’s coast, home to some of the world’s largest gas reserves. Another project led by ExxonMobil was also paused five years ago, but is now slated to begin construction after a deployment of Rwandan soldiers weakened the militias.
Progress at either site could be a boon for the country, where almost 80% of the population lives in poverty. Mozambican President Daniel Chapo estimates the Total project alone could generate as much as $35 billion for government coffers over its lifetime. The projects have “raised hopes that Mozambique… could become an African version of wealthy Qatar,” AFP reported. But such projects often take several years to make a positive economic impact: More than a decade ago, the BBC reported that Mozambique had “hit the jackpot” with its gas reserves.