Over 6,000 workers on site at Mozambique LNG project, Pouyanné says — TotalEnergies Q1 earnings call highlights

TotalEnergies’ $20 billion Mozambique LNG project in Cabo Delgado province is 42% complete, with over 6,000 workers on site and start-up targeted for 2029, CEO Patrick Pouyanné said on Wednesday at the company’s Q1 2026 earnings call. “We have also, I would say, and it is another example of the optionality and of our diversified portfolio, that more than ever the decision to restart the Mozambique LNG construction in January can be fully appreciated because it is a way of diversification which will be good for our portfolio by 2029. There was an article recently in a journal that Mozambique will be the Qatar of Africa, and we are proud to build these projects in Mozambique, and it will help us to diversify,” he said.

Q: With the ongoing crisis, are you seeing a resurgence in demand for oil-linked long-term LNG contracts, and could this unlock more LNG projects like PNG? A:Patrick Pouyanne, CEO, explained that the crisis has highlighted the importance of long-term contracts for LNG, especially in Asia. He noted that while there might be a shift towards domestic energy sources like coal and renewables, the demand for LNG remains strong.

The crisis may delay some projects, but it also underscores the need for reliable energy sources, potentially benefiting TotalEnergies’ LNG projects. Q: Could you elaborate on the potential for accelerating short-cycle investments and the steps towards FID for Papua New Guinea? A:Patrick Pouyanne, CEO, mentioned that the company is exploring opportunities to accelerate short-cycle investments, particularly in countries like Angola, to capitalize on higher oil prices.

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Regarding Papua New Guinea, he stated that the project is progressing well, with fiscal terms nearly finalized and a target to sanction the project before the end of the year. Q: Can you provide insights into the impact of the early closing of the EPH transaction and the company’s cash return strategy? A:Patrick Pouyanne, CEO, highlighted that the early closing of the EPH transaction allows TotalEnergies to benefit from higher electricity prices in Europe.

Regarding cash returns, he emphasized the company’s commitment to a cash payout ratio above 40% for 2026, with potential for increased buybacks if oil prices remain high. Q: What are the operational and logistical challenges in restarting production in the Middle East, and what’s the status of the Mozambique LNG project? A:Patrick Pouyanne, CEO, explained that restarting production involves logistical challenges like moving tankers and ensuring stability in the region.

For Mozambique LNG, he confirmed a $20 billion budget with a target to produce first LNG by 2029, noting that the project is 42% complete. Q: How is TotalEnergies managing the force majeure situation in Qatar, and what’s the timeline for the Qatari LNG expansion project?

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