Mozambique's New Leadership and the Future of LNG Projects

Mozambique's new president, Daniel Chapo, is not planning to review contract terms with energy giants like TotalEnergies and ExxonMobil, which are involved in large LNG projects. Despite ongoing insurgencies and election protests, efforts to stabilize the economy and public finances remain a priority.

Mozambique's newly elected president, Daniel Chapo, has stated that the government will not be revisiting existing contract terms with energy companies TotalEnergies and ExxonMobil. These firms are poised to embark on significant liquefied natural gas (LNG) ventures in the nation.

Following his contentious election, Chapo seeks to consolidate his position amid widespread protests. His administration is relying on these energy developments to invigorate Mozambique's fragile economy. TotalEnergies' $20 billion project in Cabo Delgado remains paused due to insurgent threats since 2021, and Chapo noted the importance of these projects to Mozambique's economic strategy.

Chapo also emphasized the importance of dialogue with opposition groups and addressed illegal mining issues. He appointed a new energy and mineral resources minister, Estevao Pale, to drive the country's energy agenda forward.

(With inputs from agencies.)