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The development of Africa’s largest liquefied natural gas (LNG) export terminal has hit a major obstacle after U.S. energy giant ExxonMobil decided to pause its participation in the USD 30 billion Rovuma LNG project in Mozambique. The move has reignited fears over waning investor confidence and the uncertain future of Mozambique’s ambitions to become a key player in the global energy market.
ExxonMobil’s withdrawal followed the company’s cancellation of a scheduled public engagement where its senior executives were expected to reaffirm support for the Rovuma LNG initiative alongside Mozambican President Daniel Chapo. The abrupt cancellation has fueled speculation of deepening hesitation surrounding one of Africa’s most ambitious and capital-intensive energy projects.
According to Oil Price, the Rovuma LNG project—valued at approximately USD 30 billion—was envisioned to be the largest LNG export facility on the continent once completed. However, the project has yet to reach its Final Investment Decision (FID) due to persistent instability in Cabo Delgado, the northern province of Mozambique that has been plagued by an Islamist insurgency since 2017.
Reports by Reuters suggest that ExxonMobil’s ability to move forward with Rovuma LNG is partly dependent on TotalEnergies’ progress in restarting its adjacent USD 20 billion Mozambique LNG project, as both projects share crucial infrastructure. Although TotalEnergies recently lifted the force majeure that had suspended its operations for four years, it has proceeded cautiously due to ongoing security concerns.
TotalEnergies had halted its operations in 2021 following a wave of violent attacks by insurgent groups in Cabo Delgado—a conflict that has claimed over 6,000 lives since it began. Despite the recent resumption of limited activity, the security situation remains volatile, with United Nations data showing that more than 100,000 people were displaced in 2025 alone, while nearly one million residents continue to rely on humanitarian aid.
The protracted conflict, now entering its eighth year, has resisted multiple counterinsurgency efforts involving regional forces and private military contractors. This persistent insecurity has stifled Mozambique’s hopes of leveraging its vast offshore gas reserves to become one of Africa’s leading energy exporters.
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Analysts warn that the ongoing violence and uncertainty have significantly eroded investor confidence, deterring the flow of much-needed foreign capital into Mozambique’s energy sector. Until stability is restored in Cabo Delgado, the country’s ambition to transform itself into a regional LNG powerhouse—and to benefit from one of the continent’s most valuable natural gas deposits—remains highly uncertain.