The Mozambican government reaffirmed on Tuesday its sovereign guarantee to the financiers of the Mozambique LNG liquefied natural gas megaproject, led by French multinational TotalEnergies, with the aim of securing the continuation of investments and reinforcing the confidence of financial partners.

The decision was taken in Cabinet and follows an update of the financial documentation for the Area 1 project in the Rovuma Basin, in Cabo Delgado province, according to state news agency Lusa. A full resumption of activities was announced in January, after the project had been suspended since 2021 due to terrorist attacks in the region.

Government spokesperson Inocêncio Impissa explained that the measure does not represent the granting of a new state guarantee, but rather a reaffirmation of commitments previously made to the project’s creditors. “What is being done today is simply to say: what we said in 2019, we reiterate the same guarantee so that investments continue to proceed normally,” he said.

According to Impissa, the decision is intended to preserve the confidence of financiers and ensure the execution of planned investments. The spokesperson added that, to date, nothing indicates that the original commitments need to be revised: “So far there is nothing to suggest that the initial agreements reached with these entities need to be changed.” Impissa did not provide details on the financial terms of the sovereign guarantee.

Valued at approximately $20 billion, Mozambique LNG is considered one of the largest private investments currently underway in Mozambique. It is expected to begin production in 2029, with a capacity of up to 13 million tonnes of LNG per year.

The project forms part of a broader set of investments targeting the exploitation of natural gas reserves in the Rovuma Basin, which are considered among the largest in the world. In addition to Mozambique LNG, the country hosts the Rovuma LNG project in Area 4, led by US major ExxonMobil, with an estimated investment of around $30 billion and a projected capacity of approximately 18 million tonnes of LNG per year. Also operating in Area 4 is Coral Sul FLNG, a floating production unit led by Italian company Eni, which began producing and exporting LNG in 2022.

The maintenance of the guarantees forms part of the government’s broader efforts to ensure the continuity of the project and preserve the confidence of the international investors involved in the development of the country’s energy resources.