- Mozambique LNG project reaches 42% completion with first gas targeted for 2029.
- Strong Q1 2026 performance driven by 4% production growth and US$8.6 billion cash flow.
- Middle East disruptions impact up to 15% of output and 20% of global oil and LNG flows.
TotalEnergies has confirmed that its US$20 billion Mozambique LNG development in Cabo Delgado province is now 42% complete, with more than 6000 workers deployed on site and first production expected in 2029.
Speaking during the company’s Q1 2026 earnings call, Chief Executive Officer Patrick Pouyanné said the decision to restart construction in January is proving strategically important as the company strengthens its global gas portfolio. He noted that Mozambique is emerging as a key future LNG hub, adding that the project will play a central role in diversifying supply by the end of the decade.
The Mozambique LNG development is one of Africa’s largest energy investments and is expected to contribute significantly to global LNG supply once operational. TotalEnergies views the project as a long term pillar within its diversified asset base.
The company reported a strong start to 2026, with oil and gas production increasing by 4% year on year, exceeding its full year guidance of 3%. First quarter cash flow rose by 20% to US$8.6 billion, supported by improved operational performance and portfolio resilience. Adjusted net income also increased, reflecting favourable market conditions during the period.
TotalEnergies maintained its focus on shareholder returns, raising its first interim dividend by 5.9% to EUR0.9 per share. The company highlighted that its geographically diversified portfolio helped offset disruptions caused by geopolitical tensions, particularly in the Middle East.
However, ongoing conflict in the region has created significant operational headwinds. Production shutdowns in Qatar, Iraq and offshore United Arab Emirates affected approximately 15% of TotalEnergies’ total oil and gas output. In addition, the closure of the Strait of Hormuz disrupted around 20% of global oil and LNG exports, placing strain on international energy markets.
The company also faced operational challenges in its downstream segment, including strike related disruptions at the SATORP refinery, which damaged three processing units and reduced capacity.
Pouyanné noted that restarting production in the Middle East remains complex, requiring careful coordination of logistics such as tanker movements and ensuring regional stability. He added that managing force majeure conditions in Qatar has further complicated LNG supply commitments.
Despite market volatility and fluctuating oil prices in recent months, TotalEnergies continues to position its diversified portfolio as a buffer against global shocks, with Mozambique LNG expected to play a key role in future growth.
Author: Bryan Groenendaal
