TotalEnergies CEO Patrick Pouyanné confirmed that the $20 billion Mozambique LNG project is 42% complete, with a target for first production by 2029. The project, located in Cabo Delgado province, currently employs over 6,000 workers on site.
- Project Status: Mozambique LNG is 42% complete with a 2029 start-up target.
- Financials: Q1 cash flow reached $8.6 billion, a 20% year-on-year increase.
- Operational Impact: Middle East conflicts shut down approximately 15% of the company’s total oil and gas production.
Progress of the Mozambique LNG Project
Speaking during the company’s Q1 2026 earnings call, Pouyanné emphasized that the decision to restart construction in January is a critical component of the company’s diversification strategy. He noted that the project’s scale could potentially make Mozambique the “Qatar of Africa.”
The CEO reiterated that the $20 billion investment serves as a hedge for the company’s portfolio, providing a diversified LNG supply by 2029.
Q1 2026 Financial and Operational Results
TotalEnergies reported strong operational performance, with organic production growth in oil and gas rising 4% year-on-year, exceeding the company’s 3% guidance. Adjusted net income and cash flow also saw significant gains, with first-quarter cash flow hitting $8.6 billion.
As part of its shareholder return strategy, the company increased its first interim dividend by 5.9% to EUR0.9 per share. Pouyanné also highlighted a commitment to a cash payout ratio above 40% for 2026, with the possibility of increased buybacks if oil prices remain elevated.
Middle East Disruptions and Global Risks
Despite strong growth, the company faced significant headwinds due to conflict in the Middle East. Production shutdowns in Iraq, the UAE offshore, and Qatar impacted roughly 15% of TotalEnergies’ total oil and gas output.
The closure of the Strait of Hormuz further disrupted the global energy system, affecting approximately 20% of worldwide oil and LNG exports. In Qatar, QatarEnergy declared force majeure for its joint ventures, though TotalEnergies decided not to pass this force majeure on to its customers.
Additionally, the company reported that refining activities were hindered by strikes at the SATORP site, which damaged three units and reduced overall production capacity.
Global Pipeline and Future Investments
Beyond Africa and the Middle East, TotalEnergies is progressing with its project in Papua New Guinea. Fiscal terms are nearly finalized, and the company aims to sanction the project before the end of the year.
The CEO also noted that the early closing of the EPH transaction is allowing the company to capitalize on higher electricity prices across Europe. To further leverage high oil prices, TotalEnergies is exploring accelerated short-cycle investments in countries such as Angola.
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