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The Mozambican Government has decided to extend until March 2029 the validity of a $2.25 billion sovereign guarantee granted to creditors of the Mozambique LNG project, led by French energy giant TotalEnergies in Area 1 of the Rovuma Basin, Cabo Delgado province. The decision follows a revision of the financial timetable for the project, valued at approximately $20 billion.
The measure is outlined in Council of Ministers Resolution No. 85/2026, reported by the Lusa news agency on Tuesday, 27 October, and reaffirms the financial commitments undertaken by the Mozambican State in April 2020.
According to the resolution, the guarantee maintains its originally approved maximum amount, beneficiaries and contractual obligations. Provisions concerning applicable law, arbitration and waiver of immunity also remain unchanged.
The resolution authorises the minister responsible for Finance to sign a Sovereign Guarantee Confirmation Letter, formally extending its validity in line with the revised Mozambique LNG financial schedule, which establishes 25 March 2029 as the completion date under the updated financing documents.
The Government clarified that the decision does not involve the provision of new financial resources or an increase in the guaranteed amount. Instead, it represents the continuation of an existing commitment to international lenders.
Speaking following the Council of Ministers meeting on 20 October, Government spokesperson Inocêncio Impissa explained that the confirmation aims to maintain investor confidence and ensure the project continues to move forward.
"What we are doing today is simply saying that what we committed to in 2019 remains valid. We are reaffirming the same guarantee so that investments can continue as normal," he said.
According to Impissa, the original commitments remain in force, with no indication that the agreements established with financial partners need to be amended.
"So far, there is nothing to indicate that the initial agreements reached with these entities need to be changed," he added.
The decision comes as Mozambique LNG undergoes financial and operational adjustments following several years of suspension caused by insecurity in Cabo Delgado.
TotalEnergies resumed implementation of the project in January 2026, following approximately four years of suspension under force majeure, declared after armed attacks in the region in 2021.
The project involves the construction of natural gas processing and export infrastructure, with an estimated production capacity of 13 million tonnes of liquefied natural gas (LNG) per year. Production is expected to begin in 2029.
The Rovuma Basin holds some of the largest natural gas reserves discovered worldwide in recent decades and is considered one of Mozambique's main opportunities for attracting foreign investment and developing its energy industry.
In addition to Mozambique LNG, the country has the Rovuma LNG project, led by US energy company ExxonMobil and valued at approximately $30 billion, as well as Coral Sul FLNG, operated by Italian energy company Eni, which began producing and exporting liquefied natural gas in 2022.
The reaffirmed sovereign guarantee represents a contingent financial liability for the Mozambican State towards Mozambique LNG's creditors. Its extension does not constitute an immediate disbursement of public funds but could result in financial obligations if the conditions for calling on the guarantee are met.
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